Investment, Stock News

10 Surefire Ways To Make An Investment Fortune, Part I

People have often asked me how I always pick stocks that end up with 20% gains in a couple of months or triple-digit gains in a year. They ask me is it luck? Maybe with a couple of stocks it may have been luck, but luck doesn’t play a role in buying ten or more stocks in the same year that earn more than 80% returns. The key is not to follow the herd, stop listening to the investment talking heads, and to learn an investment system and then be unwaveringly courageous in applying your system. There have been times family and friends have asked me for advice, and I have told them, “Buy this stock. I guarantee you, you will not lose money.”

Now I know that there are no guarantees in the stock market, but if you follow certain strategies, you can be 90% sure that the stock will appreciate. With this particular agricultural stock, it was almost the perfect stock, and I was 99.9% sure that the stock would produce monumental gains. Sure enough, the stock exploded almost 130% higher in about a year. And this stock was not some risky penny stock trading at less than a dollar a share. This stock was trading at about a share at the time I advised my friends to buy it. So below are the 10 surefire rules I employ to build enormous gains in investment portfolios.

(1)Buy When Fear is Rampant, Sell When Mania is the Greatest

Every investing course should be accompanied by a psychology course as well. The most difficult thing to do in investing is to buy more when fear and panic is rampant and to sell when mania is the highest. Stock markets and asset classes cycle in peaks and troughs. Most people will not buy stocks until after stocks are plastered all over the news and after they have just risen by 30%, 40%, 50% or more, believing that they will rise higher forever. Buying at the troughs when nobody is talking about a stock or during steep corrections provides a low-risk, \high-reward setup for your portfolio.

(2)Learn What Your Neighbor is Doing, Watch Investment Shows on MSNBC and Bloomberg on TV, Listen to the Recommendations of Your Financial Consultant – Then Make Sure that You Don’t Have a Single Thing in Common With Their Strategies

If you are one of the thundering sheep herd and perpetually follow the mindless actions of others, you are virtually guaranteed to lose money or forever relegate your portfolio to average to below-average returns. The surest way to build an investment fortune is to buy asset classes and stocks when nobody is discussing them and to sell them when everyone is talking about them. This requires a nose for market timing. Is market timing impossible as all the global investment firms always tell you? Hardly. Learning what asset classes and individual stocks are poised to skyrocket every year just takes a little bit of time, but is really not that difficult. Since time is a commodity that Private Wealth Mangers and Financial Consultants employed by large commercial investment houses lack, they tell you that market timing is impossible merely because they don’t have the time to perform the necessary research.

However, purchasing stocks that are likely close to cyclical bottoms instead of believing that market timing is impossible and indiscriminately buying stocks will easily add another 10% in returns to your portfolio per year. Do you really believe that you can make a fortune by buying any stock that is advertised on a TV program watched by millions of investors worldwide? Ultimately, if you own the same stocks as your neighbor to the right, your neighbor to the left, the talking head on TV, and the talking head at your commercial investment firm, then are doing something the proper things to build an investment fortune.

If you don’t seek out stocks and asset classes at times when nobody is considering them, you will never make serious money in investing. You may make 10% a year or maybe even 15% a year but if you want to enter the world of the big boys and earn 25% or more in annual returns, you have to dig a lot deeper than your investment peers. Just a couple of months ago (June 25, 2007) this email landed in my inbox from a big investment newsletter publisher. “Over the past week, I’ve crisscrossed northwestern Canada looking for the next great investment. I’m up here to find out what everyone’s invested in. And after attending an investment conference in Vancouver last week, I can tell you absolutely that no one is interested in gold…Base and minor metals will continue to be the best place to have your money over the next few years. Gold, as a virtually useless metal that has few industrial uses, appears to have hit its peak and could be running sideways for years like it has many times in the past.”

Then, in August, when the HUI (the major AMEX gold index) took a sharp hit in response to global market corrections, everyone proclaimed that gold was no longer a safe haven and that gold was “done”. Now, just a one-month later, on September 26, 2007, a lot of people are talking about gold’s strong rapid surge. So was the newsletter that ended up in my mailbox that proclaimed gold as dead in June right in June but terribly wrong in September? The answer is neither. The only person that is wrong is you if you blindly listen to talking heads that end up in your inbox or that you watch on TV. The fact is that little-discussed asset classes and stocks are ignored because perhaps 1 out of 1000 investors truly understand them, and even the ones that parade as experts on TV have been more terribly wrong about their calls than right. So it’s up to you to get off your proverbial bum and learn how to invest for yourself. Chasing stocks higher and buying when everyone else is speaking about them is a sure way to lose money. And so is listening to talking heads. Learn a system that teaches you to buy assets when everyone is ignoring them and you’ll outperform everyone else.

(3)Concentrate, Don’t Diversify

If you’ve read the paragraph above, you already realize that Private Wealth Managers and Financial Consultants are in short supply of time as they partake in the race to gather as many assets as possible for their respective firms. Thus, this is the reason they employ the rule of diversification for your portfolio. U.S. Navy SEALs will tell you that during an operation exfil exercise, the easiest way out is rarely the safest way out. The same holds true in investing, yet diversification is by far and away, the easiest investment strategy that anyone could possibly teach to tens of thousands of financial consultants. Certainly, diversification cannot be a complex strategy if tens of thousand consultants from varied backgrounds and industries can all efficiently apply this concept to their clients’ portfolios with very little training. Diversification is the biggest cop-out investment strategy of all time. It screams of incompetence and lack of skill – “I have no idea what asset classes are going to perform well this year so I’m going to invest you in everything under the sun.”

Assume everyday, a NBA coach looked at his active roster of 12 players and said, “I have no idea who are the best players. Because I don’t know, and don’t care to take the time to figure it out, I’m going to ensure that all 12 players share equal time every game.” This coach is unlikely to win many games versus the coach that takes the time in training camp to assess who his best 5 players are and then consequently plays these 5 players the majority of minutes during every game. This is the difference between diversification and concentration. The coach that diversifies may win some games based upon pure luck because maybe he has a couple great players that can make up for the deficiencies of the poor players he puts on the court every night. Still, most nights, the deficiencies of the poor players will drag down the performance of the excellent players.

However, the coach that concentrates and puts his best players on the court every night will be able to field a team every night that has an excellent chance of winning. This is why we concentrate in investing. To give us the best possible chance of winning. Diversification will never achieve this.Study the best investors in the world. The best investors in the world always manage their own money and they concentrate their portfolios in the best asset classes every year. Don’t believe the hype about diversification – diversification stinks, it doesn’t protect your portfolio, and it certainly will never make you wealthy.

(4)Learn Everything You Can About the Relationship Between Politics and Stocks

On September 18, 2007, the U.S. Federal Reserve cut the Federal Funds Rate (the rates banks borrow from each other and the rates the rates banks loan to customers) by 50 basis points. The U.S. stock markets soared that day, followed by strong surges in Asian markets the following morning. The interest rate cut undoubtedly was not just motivated by a desire to manufacture stability and confidence in the U.S. economy, but also motivated by politics. If you don’t \understand what I mean by this, then you have homework to do.

Governments and corporations in every major global economy in the world have formed relationships that have since been coined as “corporatocracies”. Politics has a major hand in all of the following: interest rate cuts, interest rate increases, the price of oil, the price of gold, the valuation of the Euro, the valuation of the dollar, the valuation of the Pound Sterling, permits to mine uranium in Australia, defense spending for national security, decisions to go to war, and contracts awarded to corporations. If you don’t understand politics, you cannot possibly understand global macro-economic trends and what asset classes and stocks offer the best low-risk, high-reward opportunities year after year. The lack of understanding of politics is what causes Chief Investment Officers of major commercial investment houses to make poor calls in the direction of commodity prices and the direction of global economies. Understand politics and your investment returns should increase tremendously.

(5)Learn Everything You Can About Gold as an Investment.

Gold, as an investment, is perhaps the most misunderstood and poorest understood asset class in the world. Some people believe that the physical commodity is the only way to invest in this asset, and as such, only put money into the paper gold ETFs. Other people that invest in gold stocks don’t understand the differences in price behavior between the juniors and majors; explorers, developers, and producers; hedged and unhedged companies; and the political risk of operating in different countries. Therefore, they never understand the risk-reward quotient of their gold portfolio, sell out during steep corrections, always lose money, and think that gold investments are speculative and stink. Furthermore, they don’t understand that short-term manipulation of prices of the underlying commodity and stocks can’t change the long-term outlook and performance. However, learn how to buy and sell this asset class properly and you will be rewarded as no other asset class can reward you

Article continued under same title, part II. To read the rest of the article, merely perform a search for “10 Surefire Ways to Make an Investment Fortune, Part II) or visit us at http://www.theundergroundinvestor.com

The Five Best Ways to Invest in Gold Today

With stock markets in a downward spin, gold has emerged as one of the safest and most profitable investments. This FREE report contains the key steps to profiting in gold – including the five best “profit machines” to buy right away…

When times are tough, gold soars.

And frankly, the economy has been tough. gasoline, the housing crisis, rampant inflation, plummeting stocks…

But all the while, gold prices vaulted a cool 43.25% in the past year.

Missing out on gold is already costing investors a pretty penny. What’s more, most experts are forecasting gold to rise at least another 56% by the end of this year.

So how does one begin profiting from gold? It’s simple. You don’t have to wade through a plethora of flashy web sites offering bullion or risk it all on a junior mining company.

Instead, this free report covers the ideas any investor can use to start profiting from gold right way. It also includes research on the five best ways to profit, from the most lucrative to the least risky.

No doubt, gold is on a record setting run that few will want to miss…

Most Lucrative Play: Triple-Digit Production Gains

Many gold investors are innately averse to risk, which is why some don’t consider buying stocks in mining companies as “buying gold,” per se.

But unlike many other publicly traded companies, mining shares can rise sharply when the value of what they’re extracting is spiking.

In this case, gold miners today are getting 182% more for the yellow metal compared to spot prices five years ago.

And – barring the increased costs of oil – mining the gold costs relatively the same, further widening a mining company’s profitability.

South Africa’s Gold Fields Ltd. (GFI) is the world’s fourth-biggest gold producer – with about 90 million ounces in reserves from its operations in Africa, South America and Australia.

It recently reported that its fourth-quarter production will beat its previous forecast by up to 120%.

Overall, the company has a solid balance sheet and ample reserves. But if anything scares investors away, it’s Gold Fields’ location. South Africa mines are frequently a political tool between the country’s labor unions and state-owned utility provider Eskom Holdings Ltd., which controls 95% of the country’s power.

Eskom recently jacked electricity prices up 27.5%, and unions decided to hit the government where it hurts – by striking – thus gutting the government of taxes from its vast gold profits.

That is just one example of why this stock is a risky gold play. Gold could reach another record but Gold Fields may not see a penny of it if miners are striking.

Gold Play #2: All About “Cash Flow and Earnings”

When gold prices are high, investors should pay extra attention to mining companies with increasing production levels because they translate into a bigger bottom line.

For its second quarter this year, Yamana Gold Inc. (AUY) produced almost 10% more gold than it did in the previous quarter.

What’s more, its gold production is expected to double to 2.2 million ounces per year by 2012, primarily from its Brazil and Argentina mines.

That’s because Yamana Gold went on a spending spree in the past two years, buying up junior mines around the world to lock in reserves.

“Now it is about production, cash flow and earnings,” CEO Peter Marrone told Reuters in May.

It’s also about dividends. The company recently kicked up its investor payout by 300%, a strong vote of confidence to its production and stock performance.

Unlike Gold Fields, Toronto-based Yamana Gold has operations in relatively stable parts of the world – making it less risky on the geopolitical front.

But despite its name, Yamana Gold isn’t purely a gold miner. It also produces copper, silver and zinc. How well the company continues to mine those metals – as well as their fluctuating prices – will also affect Yamana’s stock value regardless of gold prices.

Gold Play #3: Multiplying Profits with “Free Oil”

Imagine how much money you’d save if you had your own gas station. Just fill up. Go anywhere. Forget worrying about dishing out 0 a tank.

Now multiply the size of your oil consumption by 3,600 barrels.

Then multiply that by 365 for each day of the year.

That’s how much “free oil” Toronto-based Barrick Gold Corp. (ABX) is going to have now that its 0 million takeover offer was accepted by Cadence Energy, an oil and gas producer.

And that oil sorely needed.

You see, gold prices have no doubt added billions to the bottom lines of mining companies. But 25% of the cost to mine that gold goes to oil.

Factor in gold’s projected 58% climb, and this company will have a huge profitability advantage over its mining peers and the average S&P stock.

Like Yamana, Barrick has also been on a spending spree. Over the past year, it has gobbled up stakes in a half dozen mines, multiplying its reserves and production capacities in light of record gold prices.

All totaled, Barrick owns 27 mines in five continents and produces over 8 million ounces of gold a year, making it the world’s largest gold miner.

We consider this a medium-risk investment because – despite its solid operations, profitability and efficiency – it’s vulnerable like any tradable stock. But since it’s the world largest gold producer, its stock will move closest in line with gold compared to other gold miners.

And as an added bonus, it just kicked up its biannual dividend by 33%.

Gold Play #4: Tracking Gold Dollar for Dollar

Some investors want to buy gold but feel uneasy about storing it overseas, by another person… and for a commission nonetheless.

But on the same token, not many want to make their homes a burglary target by stashing gold reserves in their basements.

Enter SPDR Gold Trust (GLD), an exchange-traded fund (ETF) that trades like a stock but whose value is directly tracked the price of gold bullion.

Only 1.82 percentage points separate the gains made by gold price and Gold Trust in the past year.

Gold Trust has a billion-plus market cap, giving it ample liquidity.

And with the ongoing skid in the U.S. dollar, investors have been fleeing the greenback and investing in gold. As it gains investors, the Gold Trust has continued to add to its gold holdings.

At the same time, central banks have been selling their gold reserves. That’s important to mention because it elevates Gold Trust’s status on the list of global gold holders. Right now, it has eighth largest gold holding in the world – meaning that it has more gold than 97% of all the countries in the world.

Simply put, it’s the simplest way to buy gold without buying physical bullion or coins.

Gold Play #5: The Safest Gold Play Out There

Investors often shy away from bullion account providers because of their steep premiums and minimums. And reasonably so…

In addition to charging a 3% commission, Perth Mint also has a 0,000 minimum investment requirement – not exactly a figure many first-time gold investors have in between their couch cushions.

Kitco charges a 6% premium for 1 oz. Gold Eagle coins. Shipping and handling costs are also added, but varies on the size of the order.

Monex is perhaps the worst. On top of the 3% to 5% difference between what it buys and sells, there are commission rates ranging from 0.5% to 2.0%. Then there are shipping costs of per transaction plus per ounce. Then there are handling charges of per unit ordered.

After all that, it’s hard to get excited about collecting profits. That’s why we recommend an EverBank Select Metals Account. First off, EverBank’s minimum deposit is 98% lower than its competitors, and its commission costs are up to 86% lower than other metals brokers and bullion banks.

Second, it offers two types of gold accounts:

• Unallocated: Your purchased gold is pooled with that of other investors, eliminating storage and maintenance costs. The minimum deposit amount for unallocated accounts is a scant ,000.

• Allocated: You directly own the gold you purchase, held in your own private account. The minimum deposit for allocated accounts is ,500. Both types of accounts can be set up 24/7 online. But if you prefer a phone, call 866-326-6241, and be sure to give them the code 12608 when setting up an account.

We should point out that the publisher of Money Morning has a marketing relationship with EverBank, but that’s because its products are best in show.

[Editor's note: Inflation, the falling dollar, rising food and gas... they aren't isolated events. They're the dominoes that fell before the economy's trillion Super Crash. The new book from CNBC analyst and millionaire investor Peter Schiff, "Crash Proof," is a 257-page turner on how to survive and profit during economic collapse. click here

Investment news

Best ways to find profitable future stock

We all are looking to find the best ways to find profitable future stock. This isn’t such an easy task to go through some headlines of a website and choose the one that was creeping into your head. It needs patience and more that what could worth are reliable resources from where you’re collecting the information. One of the excellent stock advisorsapproximately 10 years of working market experience has reported this in a personal interview. It’s always better to find your own resources, things are there to welcome you and you’ll a great hand. Going for a stock brokers or a website recommendation couldn’t be a good idea at all. There’re numbers of fake websites and brokers that they can misguide you while choosing the best potential profitable stock. Some of the key factors that can understand you better before you go for an investment are given below.

Newspaper: in the matter of fact, the business section of every newspaper has covered varieties of guidelines for your potential investment. At least, they compete with the other business magazines, newspaper columns, so they’re working with excellent stock advisors.

Business magazines: there’re tons of businesses magazines are there in market. Whilst they’ll update you with a proper marketplace stocks, you can look forward for the best investments you’re supposed to get in.

The internet: undoubtedly, a great number of folks like to go for wealth information through the internet. This is the best known resources that will help you to update with the even current market and the stocks rate.

Other media: TV and Radio is definitely is one of the key resources that will keep you with updated stock news. You’ll be in touch with the broadcasting of the various business channels. Even you’re there to call best experts in the stock market.

Individual acquaintances: Probably, many of your friends, family members are there capable of giving you some best tips because they’ve been gathered knowing what you’re searching at the moment. Meeting them personally and share your thoughts and ideas and their best advice can reveals your stock skills to be good.

Your own Intellectuals: I can’t understand you this. I’ll ask you to recall the words in your head. This is something like that you are exploring news from different recourses and you will finally figure it out with your intellectuals. This can be hardly defined but if you’re going through information that you research makes you fully aware of stock skills. You’ll be only person for a better stock knowledge.

No one was born stock advisor, neither have you to look up. The best way to find a future stocks form your own resources, collection of information. As the time progresses, you’ll become an excellent stock advisor and later an advisor.