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By
www.ProfitableInvestingTips.com
Sell Stocks before the
Bubble Bursts
Is the S&P 500 Showing Us Another Bubble Ready to ...
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
Is it time to sell stocks befo...
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
The suggestion that one sell s...
Before We Continue…
Click the links below to get your
FREE training materials.
Free Weekly Investing Webinars
Don’t miss t...
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
When stocks hit a historic hig...
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
Investors who entered the mark...
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
We wrote last week about asset...
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
There are a whole host of real...
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
On the other hand the major Fr...
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
This being the case you want t...
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
When Have Stocks Hit
Their Pea...
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
In retrospect it is always eas...
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
The S&P 500 was 46 in 1994 and...
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
It fell to 82 by late 2008 and...
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
Image taken from Google Finance
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
Anyone who invested in in a ba...
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
If they were able to sell stoc...
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
If they also got out in time i...
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
This would be a thirty-fold in...
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
And this is not picking specta...
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
An exchange traded fund that t...
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
Alternatively an investor coul...
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
For every dollar invested this...
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
Fundamentals and
Market Sentim...
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
We talk often about the need f...
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
Equally important is to know w...
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
Our concern today is that a lo...
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
And many are trying to make up...
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
AND it is our belief that the ...
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
This currency devaluation will...
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
The trick to making a profit i...
http://www.profitableinvestingtips.com/investing-
tips/sell-stocks-before-the-bubble-bursts
Get in when prices are low and...
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Sell Stocks before the Bubble Bursts

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http://www.profitableinvestingtips.com/investing-tips/sell-stocks-before-the-bubble-bursts

Sell Stocks before the Bubble Bursts

Is it time to sell stocks before the bubble bursts or buy more because they will be underpriced as the dollar loses value? The suggestion that one sell stocks before the bubble bursts is based on the fact that stocks are at a historic high. When stocks hit a historic high they tend to get overpriced and then the market collapses. Investors who put their money in the US stock market in 1853, 1906, 1929, 1969, 1999 and 2008 needed a long time to make a decent return on investment. Investors who entered the market after these stock market collapsed got an immediate boost as the market climbed out of the depths. We wrote last week about asset bubble investment risks. There are a whole host of real reasons why markets could collapse across the globe and take stocks with them. On the other hand the major Free World economies are intentionally devaluing their currencies (USA, Euro Zone, Great Britain, Japan). This being the case you want to collect assets now instead of holding cash.

When Have Stocks Hit Their Peak and When Are They Overvalued?

In retrospect it is always easy to see when one should have sold stocks. But, let us look at the last twenty years. The S&P 500 was 46 in 1994 and rose to 144 by late 1999. It fell to 87 by mid-2002 and rose to 152 by early 2008. It fell to 82 by late 2008 and has risen to 197 as of this month.

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Transcript of "Sell Stocks before the Bubble Bursts"

  1. 1. By www.ProfitableInvestingTips.com Sell Stocks before the Bubble Bursts Is the S&P 500 Showing Us Another Bubble Ready to Burst?
  2. 2. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts Is it time to sell stocks before the bubble bursts or buy more because they will be underpriced as the dollar loses value?
  3. 3. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts The suggestion that one sell stocks before the bubble bursts is based on the fact that stocks are at a historic high.
  4. 4. Before We Continue… Click the links below to get your FREE training materials. Free Weekly Investing Webinars Don’t miss these free training events! http://www.profitableinvestingtips.com/free-webinar Forex Conspiracy Report Read every word of this report! http://www.forexconspiracyreport.com
  5. 5. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts When stocks hit a historic high they tend to get overpriced and then the market collapses. Investors who put their money in the US stock market in 1853, 1906, 1929, 1969, 1999 and 2008 needed a long time to make a decent return on investment.
  6. 6. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts Investors who entered the market after these stock market collapsed got an immediate boost as the market climbed out of the depths.
  7. 7. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts We wrote last week about asset bubble investment risks.
  8. 8. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts There are a whole host of real reasons why markets could collapse across the globe and take stocks with them.
  9. 9. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts On the other hand the major Free World economies are intentionally devaluing their currencies (USA, Euro Zone, Great Britain, Japan).
  10. 10. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts This being the case you want to collect assets now instead of holding cash.
  11. 11. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts When Have Stocks Hit Their Peak and When Are They Overvalued?
  12. 12. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts In retrospect it is always easy to see when one should have sold stocks. But, let us look at the last twenty years.
  13. 13. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts The S&P 500 was 46 in 1994 and rose to 144 by late 1999. It fell to 87 by mid- 2002 and rose to 152 by early 2008.
  14. 14. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts It fell to 82 by late 2008 and has risen to 197 as of this month.
  15. 15. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts Image taken from Google Finance
  16. 16. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts Anyone who invested in in a basket of US stocks in 1994 made money by 1999.
  17. 17. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts If they were able to sell stocks before the bubble burst they were able to reinvest in 2002 and buy three times as much stock with their profits.
  18. 18. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts If they also got out in time in 2008 they doubled their money from 2002 and were able to reinvest in late 2008 and buy roughly twice as much stock again only to see it go up two and a half times until today.
  19. 19. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts This would be a thirty-fold increase on investment capital for those who sell stocks before the bubble bursts and patiently wait for the market to bottom out before re-investing.
  20. 20. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts And this is not picking spectacular stocks but rather a portfolio that simply mirrors the S&P 500.
  21. 21. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts An exchange traded fund that tracked the S&P 500 would have sufficed.
  22. 22. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts Alternatively an investor could have waited until 1999 to invest in the S&P 500 and gotten out in a panic when the market finally bottomed out in 2002, repeated this again in 2008 and waited until today to reinvest.
  23. 23. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts For every dollar invested this way the investor would have eight cents left over.
  24. 24. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts Fundamentals and Market Sentiment
  25. 25. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts We talk often about the need for sound fundamental analysis of stocks.
  26. 26. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts Equally important is to know when herd instinct instead of sound analysis is driving the market.
  27. 27. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts Our concern today is that a lot of money is chasing too few investment vehicles.
  28. 28. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts And many are trying to make up for lost opportunities and using highly leveraged investment vehicles that will evaporate in value if the market tanks.
  29. 29. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts AND it is our belief that the USA, EU and Japan will continue to devalue their currencies in order to stimulate their economies and make their products more competitive on the world stage.
  30. 30. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts This currency devaluation will make real estate and stocks more valuable in the long run as valued in these currencies.
  31. 31. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts The trick to making a profit in this world is the dual analysis of fundamentals and market psychology.
  32. 32. http://www.profitableinvestingtips.com/investing- tips/sell-stocks-before-the-bubble-bursts Get in when prices are low and no one is interested and sell stocks before the bubble bursts when they have become obviously overpriced.
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