Do We Have A Stock Market Bubble And Will It Burst?

Most people on the market say that the American stock market is overvalued and they use the Shiller-Cape-Ratio in order to justify their comments.

Well, I say it's hard to say whether we are in a stock market bubble but we see definitely low yields in terms of free cash flow and high premiums on book value. It it’s a real bubble; it is a question about how fast the future growth can develop.

For the time being, the economy is recovering at a slow pace and the inflation seems to be flat. This is a good environment for the FED to keep the interest rates low which give the market more fuel.

Below are two interesting info-graphics which I have found by stumbling the economic theme space of the internet.

The first picture shows that it doesn't matter if you buy in a bubble. If you buy and hold stocks for the long period, you will make money in the end. The only difference is that your return will be smaller or over a long period negative.

What do you think? Would you buy stocks for bigger amounts of money? I personally keep around 15 net cash but that's in my view not an optimum when the yields for fixed income are so low.

My thoughts go into foreign stock markets. China and Europe stocks seem to be more fairly valuated but if you look what's going on in Europe and China, you would think about your investment a second time.

How do you place your money? Please let me know if you still buy stocks. Best Tom.

Source: BizBrain.org

Why Stocks Are The Best Place For Your Money | A Small Guide

One question which is often asked by many people when they talk about “where to place money” is the following one:

If stocks realize a return of around 8% to 12% per year over a long period of time, why doesn’t everyone invests money into the stock market? Why are there so many possibilities where they place their money?

It seems that stock investing is a good method to earn money. Buying stocks and trading shares is an interesting and exciting game. Why put so few people money into the stock market?

The first answer is that not everybody has enough money for buying stocks. Most people need the money to finance their homes, lifestyles and children's. They have to pay bills at the end of the month they don't have enough cash to save which they could use for stock trading or long-term investing.

A second answer is that the stock market is also the best place to lose money very fast. Stocks go up and down by 1% to 5% per day in a normal case, tail risks not included. That's too much for an anxious investor. People like safeness. They don't want volatility.

If you like to play with money you can also travel to Las Vegas. It's much more exciting to play with your money there because the showbiz effect is much higher.

The stock market offers a higher risk than other investments with a fixed income like bonds. Gold and commodities with a daily use getting more and more attractive for investors. All these are popular alternatives. But can you make really money with it?

Derivatives is the fastest growing asset class at the market. With these products, you can hedge nearly everything that has a market price. You can buy assets which don’t exist today and will be produced in five years or so. Everything is possible.

Trading is getting more and more complex and people want this. The market delivers only and tries to satisfy the need of the population or investment community.

For people with a lower risk appetite are the mentioned assets an attractive alternative to get diversified from the stock market.

If you have a small investing budget and your thoughts are floating around exchange trading funds (ETFs) or index funds because everybody talks about it and they seem to be the right investment vehicles for you, please make a deeper research before you buy those products. You should consider if this is the real place to put your money in.

Sure it's a great way to get diversified with low commissions if you have only 500 bucks or so. But let me mention: Today's trading costs are so low that you can buy stocks for only one dollar per trade. That's not much.

If you like you can place a few hundred bucks for a dollar of trading cost and start to build your own portfolio. All you need to do is watching or hunting for the best stocks with a solid business model, a trustful management and growth potential. You also need a little bit luck.

Stock investing is not only luck and hard work via trading. 90% of successful stock investing is research and patience.

What are your thoughts about success stock trading? Are you a successful trader? Let me know and please leave a comment below!

100 Of Americas Fastest Growing Stocks That Made Investors Rich

The Fastest Growing Companies At The Stock Markets Researched By “long-term-investments.blogspot.com”. Sometimes I ask myself how it could be to be an owner of a small company that would be 10 times bigger in five or ten years. If I pay an acceptable price for the company, I could make a significant amount of money with these stocks. Well, stop dreaming! I screened companies with the currently highest growth and return figures from the actual business year and made them available in my 100 fastestgrowing stocks list.

Below is a short overview of the 10 best stocks. Only four of them pay dividends but most of the companies are very cash rich and could initiate a dividend if the growth slows.  

Stock Market Performance Update By Countries (Year-to-Date)

Global Stock Market Performance Sheets by Bespoke Investment Group. Below is a performance sheet of the world leading stock market indices. The list is sorted by year to date stock market performance. Biggest gainer was Venezuela, followed by Bulgaria. The stock market with the biggest losses has Bangladesh with a negative year to date performance of 21.43 percent.

Here is the table:




Source: Bespoke Investment Group