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Monday, February 16, 2009

About Stocks: Stock Market Often Leads Economy in Rebound

About.com    Stocks
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  from Ken Little
President Obama will sign the massive economic stimulus bill Tuesday, marking the most expensive piece of legislation in history. Passage of the bill was split on ideological lines and many questions remain. However, the most important one is: What's the worst that can happen? If the bill is too large as critics charge, we will face huge deficits and inflation - certainly bad circumstances, but not insurmountable. If the bill is too small, we will face huge deficits, inflation and a stagnant economy. Of those two choices, the latter is far worse. The odds of getting a Goldilocks bill (just right) are slim and none.

 
In the Spotlight
Stock Market Often Leads Economy in Rebound
Despite the terrible circumstances that grip the economy and the stock market, I believe we will pull out of this mess. The only question in my mind is when it will happen.

 
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Diversify Your Stocks Correctly to Avoid Losses
You have probably heard how important it is to diversify your stock holdings - don't put all your eggs in one basket. This is good advice, but you need to be thoughtful about diversification.

 
Understanding Dividend Yield
Not all of the tools of fundamental analysis work for every investor on every stock. If you are looking for high growth technology stocks, they are unlikely to turn up in any stock screens you run looking for dividend paying characteristics.

 
 
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