About
InvestmentWatch provides high-value, complementary financial content. This is different from other finance blog because it focuses on opinion and analysis rather than news, and is primarily about the overview of the market and the existing opportunities for investors, and it describes our personal approach to stock picking and portfolio management rather than simply recommending stocks. In a difficult time like this, my blog will primarily provide tips to survive the recession and invest safely.
My blog is also a place where you can share your stories. Any useful, shocking, interesting news, rumors, analysis, reports and discoveries that related to investment, personal finance, market, real estate and politics are all welcome to submit to here and share.
I am sure there are better sources out there, than I. I have never had an original thought in my life. I just take what people a lot smarter than I say and combine them with my life’s experiences.
Note: The articles/news are mostly submitted by the readers, if it violate your copyright, please email to admin@investment-blog.net, we will fix it as soon as we can. (please attach your evidences in the email)
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Are you currently unemployed? Did you lost all your money by betting on the wrong stock? Are you struggling with the bills or debt? Is you and your family on the verge of foreclose? You need more financial knowledge to protect yourself. Please visit my blog DAILY before you get seriously hurt!
2008-2010 Recession:
The average person who has no real financial knowledge is about to get seriously crushed in this recession. Read everything you can about the great depression and similar financial collapse. Think about the basics. Cut spending, hoard cash. Pay off debt.
For investors, you need to be very careful to invest your money in this recession.
Investment or investing is a term with several closely-related meanings in business management, finance and economics, related to saving or deferring consumption.
Investment is the choice by the individual to risk his savings with the hope of gain. Rather than store the good produced, or its money equivalent, the investor chooses to use that good either to create a durable consumer or producer good, or to lend the original saved good to another in exchange for either interest or a share of the profits.
In the first case, the individual creates durable consumer goods, hoping the services from the good will make his life better. In the second, the individual becomes an entrepreneur using the resource to produce goods and services for others in the hope of a profitable sale. The third case describes a lender, and the fourth describes an investor in a share of the business.
In each case, the consumer obtains a durable asset or investment, and accounts for that asset by recording an equivalent liability. As time passes, and both prices and interest rates change, the value of the asset and liability also change.
What’s stock market?
A stock market, or equity market, is a private or public market for the trading of company stock and derivatives of company stock at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.
The size of the world stock market is estimated at about $36.6 trillion US at the beginning of October 2008. The world derivatives market has been estimated at about $480 trillion face or nominal value, 12 times the size of the entire world economy. It must be noted though that the value of the derivatives market, because it is stated in terms of notional values, cannot be directly compared to a stock or a fixed income security, which traditionally refers to an actual value. Many such relatively illiquid securities are valued as marked to model, rather than an actual market price.
The stocks are listed and traded on stock exchanges which are entities a corporation or mutual organization specialized in the business of bringing buyers and sellers of the organizations to a listing of stocks and securities together. The stock market in the United States includes the trading of all securities listed on the NYSE, the NASDAQ, the Amex, as well as on the many regional exchanges, e.g. OTCBB and Pink Sheets. European examples of stock exchanges include the London Stock Exchange, the Deutsche Börse and the Paris Bourse, now part of Euronext.
How do you behave at stock market?
Sometimes the market tends to react irrationally to economic news, even if that news has no real effect on the technical value of securities itself. Therefore, the stock market can be swayed tremendously in either direction by press releases, rumors, euphoria and mass panic.
Over the short-term, stocks and other securities can be battered or buoyed by any number of fast market-changing events, making the stock market difficult to predict. Emotions can drive prices up and down. People may not be as rational as they think. Behaviorists argue that investors often behave irrationally when making investment decisions thereby incorrectly pricing securities, which causes market inefficiencies, which, in turn, are opportunities to make money.
The must-reads articles;
BUFFETT: “DON’T BUY STOCKS JUST BECAUSE THEY ARE UNDERVALUED.”
HOW TO PICK STOCKS TO INVEST IN THE WARREN BUFFETT WAY?
It usually takes me a while to discover some good stocks really worth to invest and I will updated my porfolio as soon as my porfolio changed:
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