EASIEST WAY of making money from stocks ....SECTOR ANALYSIS

Easiest way of making money from Stock Markets is ANALYZING WHICH SECTOR WILL GROW:

EASIEST WAY is to invest in Sector-Wise Mutual Funds.
Funny thing is, sometimes, some Sectors have an Inverse Ratio vis a vis other Sectors.
But, let me do some few Single Sector , Zero Correlation Analysis.

Here are some case examples......

• Mutual Funds (Infrastructure) with Steel & Cement emphasis GREW prior to Beijing Olympics......
• BANKING SECTORS WILL ALMOST ALWAYS POST POSITIVE, if not spectacular growths. Which country wants it's banks to fail ??? Elementary. UNLESS, the Oil deficit sucks out too much money from the Reserves. Scary, but possible.
• Petro-Funds are for SHORT-TERM TRADING....I deal with Oil Oscillations in my Global Study blog.
• Information Technology (IT) is a buzzword. But, if I were to invest, well, I'd go into ITES (I.T. enabled services) before 2009 January. Dependent on who comes - Obama or John Mc Cain. My hunch is Mc Cain...but that's a diff'rent story. Though I saw media mogul Murdoch stating in an interview it will be Obama thru' narrow margin. Anyway, Republicans = Outsourcing O.K. = ITES - biased Funds skyrocketting.
• Pharmaceuticals in Developing Countries.....will move up due to globalization effects
• FMCG (Fast Moving Consumer Goods) will be reflected by overall economic trends. No spare money = no buying power to buy FMCG.
• INDEX FUNDS !!! IMHO, one can make a HUMONGOUS AMOUNT OF MONEY FROM JUST STUDYING "MASS PSYCHOLOGY" EFFECTS......this is EASY MONEY TO MAKE on a short-term basis.

So, IMHO, far greater DEMOCRACY / SCRAPPING OF ENTRY , EXIT -LOADS & CAPITAL GAINS is needed to BENEFIT both the ECONOMY & the INVESTORS....

So, this is one GET RICH EASILY WAY.......studying individual stocks of individual companies is too much time-consuming...one has to be a 100% committed investor and quit other stuff to MAKE REAL BIG MONEY.....

....Medium Investors CAN GET RICH EASILY BUYING & SELLING SECTOR FUNDS.

HOW TO AVOID LOAN TRAPS...a primer

A lot of people I know are now LOSING (to the banks, of course) a lot of their hard-earned money. This is thanks to the floating interest rate skyrocketing. And most of these folks took money for home loans and other loans in this consumerist world. A lot of them are rich...

But one guy,for example, a rich trader in my neighborhood, has lost all peace of mind & losing almost 40% of what he earns.
From what I gather from him, it's the other way, around :

The bankers are laughing all the way to (or shall I say, at) the banks

The more I read about Warren Buffet, world's richest man, and the most successful investor (though his 'guru' Benjamin was a theorist) + George Soros + Rakesh Jhunjhunwala & others...I'm convinced of this :

• A loan should only be taken at a fixed rate when the country's inflation rate is low, and hence lending rate is low. One should compare the present rate when taking loan to the historic rates upto 10 years back.
  
• If one takes a floating loan in a fluctuating economy, well, you get even get ready to pay 1.5 times to 2 times your asset value you are after...be it a home, or a fancy car, or whatever.
• Bankers & investors investing in Bank Sector Mutual Funds make money....professionals lose all the money to the banks.
• Never give in to Greed. Shanbhag, yet another legendary Indian investment advisor, always cautions against taking loans of high value...like for homes, or foreign education loans 'n' stuff.

I received a few calls after my last SMS 'es...2 of them very angry at me...it's a case of transferred anger at the economy....both of them have taken floating rate loans when the rate was low.

Floating rate interest, connected to the economy, a country's centralised Bank's health, Stock Markets (now Global, BTW), GDP, Forex Reserves, other reserves, investor psychology, commodity price import/export value(like crude oil) & so many factors.....is impossible to predict...at least by me.

Folks....hope you read my other blogs on global stock markets 'n' stuff to get the Macro economic idea. Macro > Midi > Micro > personal investment. That's how it goes.

Invest in Term Deposits for 5 years...lose money 1st year, make money for 4 years

Strange solution ? ?

Well, here's the reasoning why you'll GAIN if you go for Term Deposits FOR A LONG TENURE OF 4-5 YEARS .

You see, the inflation has pushed up the interest rates.

Now, here's my prediction:

The inflation rate(11-12%) is currently higher than the interest rates for 5 years(10%). You are losing, right?
O.K. keep losing....But, my guess is
...the inflation rate, linked to crude oil prices + food crisis + other factors....

WILL START GOING DOWN WITHIN 1 YEAR......

Why?

Because within 1 year :

• The Crude Oil Crisis will blow over.
• Food crisis will go down due to the monsoons
• NDA will form the Government (I think within 6 months, for that matter)
• Political stability under NDA will ensure better economic decisions, though I like Dr. Manmohan Singh (poor guy, his hands were tied by political compulsions.....if freed from constraints, he could have by himself solved the inflationary mess we are in. I hope the country remembers he saved India from ruins !)

So, after 1 year, the Inflation Rate goes down......within 2 years, it might even touch 5%.

But your Bank's Interest Rate will be 10%.....

So, you GAIN BIG TIME........
10%-5% = 5% ASSURED GAIN for 3-4 years.

You can even wait 2 months more for the Interest Rates to go up to even 12% .

INVESTING IN SILVER.......part 5

By now, I guess from the charts all you folks are more or less convinced that Silver's the future profit-making commodity.

Yielding better gains than gold, or stocks and other instruments.

Well, so how do I buy silver ??? You ask....

Here are some options:

1. Silver Bars. These, however, should have the purity certificate. Plus, buy them from reputed banks. Recommendation : Excellent
2. Silver coins. Again....the purity + good banks. Incidentally, some silver's upto 99.99% pure.Recommendation : Excellent
3. Silver Accounts. Certain banks offer silver accounts, where you can buy silver...that is, the money you commit makes the bank buy and hoard silver. You can sell the accounts.Recommendation : Excellent to Very Good.
4. Stocks to Mutual Funds of Silver Mining Companies. Recommendation: O.K. to Mediocre. Why? Well, because the company's share value depends NOT ONLY ON SILVER'S PRICE INCREASE, but other intrinsic factors.

So, that's it......I would definitely go for silver.

The economy might be gloomy, cloudy....but that's where the proverb kicks in :

Every cloud has a silver lining .

So you really want to be super rich ?? .....Consider this

Study the lives of the super rich.....and you'll find some very interesting things.

Contrary to popular belief...in their academic & professional lives :

NONE OF THEM WERE......

BRICKS IN THE WALL.

George Soros narrowly escaping from the concentration camps....
Bill Gates a college dropout....
Richard Branson deliberately escaping death (havin' a brush) 10+ times....
Warren Buffet (currently #1) doesn't give a damn about MBA 's in Finance & what not.....
Dhirubhai Ambani selling "pakoras" to pilgrims in Mount Girnar......
J. Rockefeller & so on & on .......

How many MBA's do you know who have made it to the Top 1000 Richest People in the World ?

Investing in Silver .....part 4

Uncertain times for the global market.....with crude oil touching $140 / barrel....
....rising global inflation rates...
....even food crises (who could have even thought of that !)

But. once again......check out this graph . I think I got it from kitco or some other source...anyway, it's a wonderful graph that shows the returns when it compares Silver versus Gold versus Dow Jones Industrial Average :






What more should I have to say, folks......

Well, I'm getting e-mails and calls from worried investors all over the world asking me about silver, silver and more silver. Instead of phoning me you can send me an e-mail....I can attend to your problems.

But before switching off your PC......remember :

The electronic mainboard of your PC uses a little bit of silver.

Add all the electronics components and gadgets....I hope you understand

WHY THERE'S GONNA BE THIS
SCARCITY OF SILVER !!!

Investing in Silver....part 3

The other factors that are contributing to silver prices skyrocketting up are:

The currency traders are exiting the market and entering the bullion market. These type of traders prefer gold, silver & platinum. Once they start to realize the value of silver...prices will escalate like anything.

And currency traders know very well the fact that THE PRICES OF SILVER HAVE MORE THAN DOUBLED AGAINST THE VALUE OF THE U.S. $ SINCE DECEMBER 2001.

Once these same set of traders realize that returns from silver will be far greater than gold, obviously they'll turn to silver.

check out the following graph from stockcharts.com:


Post 9/11......after a buffer time, the U.S. $ (red line) begins to fall.

FROM ABOUT THE SAME TIME, SILVER PRICES (blue line) BEGINS TO RISE.

Obviously, this is an effect of the currency traders shifting attention to silver.