What is one sure way to know the economy is in deep trouble? Ask the IMF! The International Monetary Fund, largest lending and banking agency in the world has expressed serious concerns about the state of the european and us stock markets and overall financial health.
In its semi-annual Global Financial Report, the IMF team has jointly expressed a very negative view of the future. Saying that the current economic crisis is likely to be much worse than the recession we experienced in 2008, the IMF points out that all "risks are elevated, and time is running out to tackle vulnerabilities that threaten the global financial system and the ongoing economic recovery," IMF.
So how can we get out of this crisis? With very negative predictions and major cuts on its world economy growth forecast for next year, the IMF is skeptical, but not hopeless, "Restoring confidence in the stability of the U.S. housing market is the key to bolstering the prospects for U.S. banks," increasing spending and stabilizing the stock market.
So while no one is advised to blindly throw all their investments into penny stocks, buy multiple houses, or go crazy with retail spending; living as normal of a life as possible is the only way to get back on track. Buy, spend, sell, invest and be patient, is the advice IMF would give. Always remember that markets will correct themselves regardless of what you do do, but if you give them a little push, they will do so sooner than expected.
read more about IMF's gloomy predictions in today's msn money!
Wednesday, September 21, 2011
Wednesday, September 14, 2011
Penny Stock Tips:
Penny Stocks For Dummies
Though there does not exist a penny stocks for dummies book, it certainly should be written soon. The confusion surrounding penny stocks is really overwhelming for most investors. In fact there is a large community of investors out there, who dare not buy any penny stocks because they are completely clueless about these little treasures and too embarrassed to ask their more experienced friends.
So for all those who are not sure what a penny stock is, where it trades and what you need to do with it, here goes:
A penny stock lacks a formal definition but is usually understood to be a small cap stock which trades under 5 USD. Penny Stocks can also be defined as companies that have a market capitalization of under 200 million dollars.
Penny Stocks do not trade on regular stock exchanges, instead being listed on so called Pink Sheet. Pink sheets, another name for OTC boards, refers to the pink colored papers on which penny stocks lists are delivered to the broker, and through the broker to the investor.
This gets us to the next point. Penny Stocks can be very very tricky. Having to go through a broker and paying brokerage fee can be worth it but one has to be very aware of all the crooked and cheap brokers out there. That being said, penny stocks brokers should never be expensive and going the discount broker rout is the very best decision when making a penny stock brokerage account.
Another thing to be conscious of when investing in penny stocks is fraud. Pump and dump schemes and different price manipulations can be very serious and very common. However, luckily for penny stocks investors, the SEC has started cracking down on fraud in recent months. read more about penny stock fraud in this New York Times article.
Though there does not exist a penny stocks for dummies book, it certainly should be written soon. The confusion surrounding penny stocks is really overwhelming for most investors. In fact there is a large community of investors out there, who dare not buy any penny stocks because they are completely clueless about these little treasures and too embarrassed to ask their more experienced friends.
So for all those who are not sure what a penny stock is, where it trades and what you need to do with it, here goes:
A penny stock lacks a formal definition but is usually understood to be a small cap stock which trades under 5 USD. Penny Stocks can also be defined as companies that have a market capitalization of under 200 million dollars.
Penny Stocks do not trade on regular stock exchanges, instead being listed on so called Pink Sheet. Pink sheets, another name for OTC boards, refers to the pink colored papers on which penny stocks lists are delivered to the broker, and through the broker to the investor.
This gets us to the next point. Penny Stocks can be very very tricky. Having to go through a broker and paying brokerage fee can be worth it but one has to be very aware of all the crooked and cheap brokers out there. That being said, penny stocks brokers should never be expensive and going the discount broker rout is the very best decision when making a penny stock brokerage account.
Another thing to be conscious of when investing in penny stocks is fraud. Pump and dump schemes and different price manipulations can be very serious and very common. However, luckily for penny stocks investors, the SEC has started cracking down on fraud in recent months. read more about penny stock fraud in this New York Times article.
Subscribe to:
Posts (Atom)