Buy, buy, buy! Stocks are cheap!

Today's Market
by Dr Invest

As I predicted, the market moved higher today and a further rise in the market is possible over the next few days. The financial "talking heads" are using this time to renew their lies that we are in a "strong rebounding economy" and that "now is the time to buy stocks while they are cheap". Don't believe any of this. Go back to my week-end report and look at the seasonal chart for stocks. Think about what has happened over the past 32 years in May and June...especially note what happens in August and September.

I hope I can keep you from a world-of-hurt as you make your own investment choices. There is no perfect investment record, every investor loses money from time to time. The objective is to limit the amount of money you lose, and to be maximize the amount of your returns.

HOW ARE THE BOND FUNDS?

Both TIP and BND increased in value today and since investing into BND and TIP on May 2nd, the total return has been .88%. If I had an average gain of .88% per month over the next eight months, my gains in my portfolio will have been admirable.

As the market turned down in April, most of my stocks sold. In January, I had already sold numerous stocks because the fundamentals of the market were poor. The fundamentals are still poor and care should be taken to protect all investments with a STOP-SELL.

TIP and BND were purchased in May, because BOND ETFs perform well from May until October. Neither TIP nor BND will be sold unless they fall below their 10 month SMA (simple moving average)

LEARNING AN INVESTMENT SYSTEM

Go back and begin reading the blog from the first of MAY to learn how I diversify my portfolio and how I slowly invest in three tiers. Investing in three tiers is optional, but it is a good habit to develop in investing. If a BOND or STOCK is really going to be a long-term performer, investing at three different times will not largely affect your total profit. Though it takes two months to get 1/3 of your portfolio fully invested, it is a safer way to move into an investment position. (1st investment <month passes>, second investment <second month passes>, final investment <1/3 of your portfolio designated for BONDS is now invested>)

(Note: the above information is for entertainment purposes only and not to be used as financial advice)