lundi 29 juin 2009

Gone are the Days of Buy & Hold ...the ‘New’ Stock-Market-Rich Eye the Future

Suppose the CEO of a publicly traded company personally whispers in your ear that better-than-expected earnings results will be announced this quarter. What would you do? You have a ‘sure thing’ sitting in the palm of your hand, the kind of information traders scratch and claw for (even get locked-up for!) -- but in this scenario you are assured it’s 100% ‘above-board’ legal and legit.

If you’re like most traders you wouldn’t sit back on your haunches -- you would be poised and ready to jump right into that stock, reaping the sweet capital rewards.

Well guess what? The truth is this happens several times a day in the stock market and it IS above board and perfectly legit all thanks to a federal regulation most investors don't pay attention to. (And why don't they pay attention to it? Because it's still relatively new!)

It's called Regulation Fair Disclosure -nicknamed "Reg FD"- and it was passed into law by the Securities and Exchange Commission in October 2000. It basically states that CEO's of companies could no longer schmooze in secret with Wall Street analysts --and let them in on news about their company's earnings before the public knew about it. You see, before Reg FD, CEO's let select powerful Wall Street analysts know beforehand what was about to come down the pike regarding their company's financial outlook and earnings potential. This by the way fostered lots of expensive wine-and-dine parties with these Wall Street analysts, "scratch-your-back" deals, and underhanded shenanigans. But the real mess was how this screwed over the investing public.

You see these analysts, with this prized information in their back pocket, wielded enormous power. For one, they could feed their wealthiest private clients this info - making the proverbial rich get all the more richer.

But who got the raw deal? The individual investor.

You see, analysts would play games with the investing public with their "upgrade and downgrade" games, all designed to stir up and manipulate the masses! This new S.E.C. regulation put the kibosh to these practices and leveled the playing field. Now, an individual investor (if they know what they're looking for) has access to this same information these privileged few used to have exclusive access to. It's still pretty hidden, you have to know what you're looking for and nowadays it's disguised as a news item.

In fact a study was done in the year 2001, the year of the dotcom wipeout, then 9/11. 2001 was one of the scariest years on record to be an investor! Yet, in this study it was revealed that every time a company announced a little-known piece of news...86% of the time the price of the stock was higher 3-6 months down the road than where it was at the time of this announcement. It's a subtle thing and a simple thing, yet it can give any online investor a serious edge in succeeding with their online investment goals. Over and over again, for as long as the markets exist!

To find out exactly what this little-known piece of news is, and how to best take advantage...head on over to the website listed below. The website name is a little funny, but once you discover what this is - you'll be thinking that this little gem is just like finding some buried treasure!

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