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Aussie Monetary Policy a forecast for the USA
A fundamental question we get asked a lot is whether forecasting is of any use whatsoever? We think it is, and offer up an intriguing comparison between Australia’s current economic situation and the road the US is going down -- to its detriment.

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Investment Performance and The Working Capital Model
Ouch! The mighty Dow has fallen to within a financial heart beat of its 1999 high water mark, boasting an average per year gain of less than one half of one percent in spite of several interim manipulations designed to improve the performance picture. The S & P 500 Average, an equally prestigious indicator of broader market movements, is nearly 13% below where it was at approximately the same time. Both figures reflect no investment expenses at all. So, in spite of the mostly ignored fact that neither index includes any income securities (bonds, preferred stocks, REITs, etc.), a reasonable person could well expect his or her portfolio market value to be well below where it was nearly ten years ago! Now that's a fairly dismal scenario, but it's the in-your-face reality for most investors as we move forward into what we all hope will be a more spring-like investment climate.

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Asset Allocation: Investing by the Numbers
Uno. Asset Allocation is an investment planning tool, not an investment strategy... few investment professionals understand the distinction. Investment strategies are used to implement the asset allocation formula that investment planning produces. Many investors incorrectly believe that investment planning and financial planning are one and the same. Financial planning is the broader concept, one that involves such non-investment considerations as: Wills and Estates, insurances, budgeting, trusts, etc. Investment Planning takes place within the Trusts, Endowments, IRAs, and other Brokerage Accounts that come into existence as a result of, or without, Financial Planning.

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Income Investing - Why isn't this easy?
Most people (including myself) would insist that Equity Investing is the most difficult to master. After all, that is the venue for: erratic price fluctuations caused by an endless supply of social, economic, and political variables; the standard Wall Street misinformation, corporate malfeasance, self- serving financial gurus, and product sales persons; a myriad of popular and market moving speculations from IPOs to Option and Margin strategies; thousands of media talk shows and their financial markets' experts. When you think you understand the stock market brother, you are in serious trouble.

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Independent Investor & Getting started and building wealth
Managing your own trading accounts can be exciting and more profitable than investing in mutual funds or just buying and holding. Some research and an understanding how prices move are required to make profitable trades. Most people see the stock market as a way to meet their long term investing goals. They place their spare funds in it and hope for a decent return over time. Now there’s nothing wrong with that way of thinking, but here is a more interesting way to look at things.

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Investment Management – Income Portfolios
The reason people assume the risks of investing in the first place is the prospect of achieving a higher rate of return than is attainable in a risk free environment (i.e., an FDIC insured bank account). Risk comes in various forms, but the average investor's primary concerns are "credit" and "market" risk - particularly when it comes to investing for income. Credit risk involves the ability of corporations, government entities, and even individuals, to make good on their financial commitments; market risk refers to the certainty that there will be changes in the Market Value of the selected securities. We can minimize the former by selecting only high quality (investment grade) securities and the latter by diversifying properly, understanding that Market Value changes are normal, and by having a plan of action for dealing with such fluctuations. (What does the bank do to get the amount of interest it guarantees to depositors? What does it do in response to higher or lower market interest rate expectations?)

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Planning: A Key to Successful Trading
From time to time I get some very interesting confessions. Here is a very recent one, along with a solution. "Hey Joe! I had been looking at a profitable trade setup all day. I studied indicator after indicator looking for confirmation, even though I know many are correlated and redundant. But I just kept on searching. I thought, 'Maybe I missed something.' My account is now so small that I just wanted to be sure that this was the right trade. My thought was that I must take into consideration anything and everything that could cause this trade to fail. I can't afford to lose any more money. What should I do?"

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Become a Disciplined Trader
The number one problem for most traders, and reason they cannot get ahead, is that they simply cannot muster the discipline to get out of a trade when they should. No matter how often I say it, I cannot persuade others to get out in time. Part of the problem is human nature, and part of the problem is erroneous hype from most sources that traders encounter when first entering this business.

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The Trade Decision
1. Avoid adding to a losing position. 2. Always determine a stop and a profit objective before entering a trade. Place stops based on market information, i.e., what you see and know, not based on your account balance. If a "proper" stop is too expensive, don't do the trade. 3. Remember the "power of a position." Avoid making a market judgment when you are already in a position. 4. Your decision to exit a trade means you perceive changing circumstances. Don't suddenly think you can pick a price. Exit at the market.

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Investing Stock Market ABC’s
While most folks today trust mutual funds and their professional managers with their investments, it's still important to understand the basics of the stock market. Although investing in individual stocks may not be right for everyone, a basic understanding of the stock market is essential to understanding the workings of our economy and business sector.

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Stock Option Trading Millionaire Principles
Having been trading stocks and options in the capital markets professionally over the years, I have seen many ups and downs. I have seen paupers become millionaires overnight. And I have seen millionaires become paupers overnight. One story told to me by my mentor is still etched in my mind: "Once, there were two Wall Street stock market multi-millionaires. Both were extremely successful and decided to share their insights with others by selling their stock market forecasts in newsletters. Each charged US$10,000 for their opinions. One trader was so curious to know their views that he spent all of his $20,000 savings to buy both their opinions. His friends were naturally excited about what the two masters had to say about the stock market's direction. When they asked their friend, he was fuming mad. Confused, they asked their friend about his anger. He said, "One said BULLISH and the other said BEARISH!"

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