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Monthly Archives: May 2010

Wise Words from Warren Buffett’s Wife

May 7, 2010
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Wise Words from Warren Buffett’s Wife

A few years back, there was a lot of buzz about Warren Buffett’s monumental donation to the Gates Foundation.  It deserved that buzz, because it was (and remains) the largest charitable contribution of all time.  But it was also remarkable because it amounted to the second-richest man in the world (now third) giving the bulk of his wealth to the richest man in the world (now second), who, in turn, left the helm of the company that he built in order to pay more attention to the best way to give away the bulk of their combined wealth. But...

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The Lowdown on Technical Analysis

May 6, 2010
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The Lowdown on Technical Analysis

I just read a fairly scathing post on the Web supposedly detailing why technical analysis of stocks is useless and why fundamental analysis is the only reasonable method for those who actually want to make money in the market. I was less than amused. For one thing, the whole piece was so dismissive that it amounted to “Numbers Rule and Charts Drool!” For another thing, the writer set up a straw man of the sort that a logic teacher would have sent him to the corner for in years past. By asserting that technical analysis was useless when used...

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Trend-Spotting in the Retail Sector

May 5, 2010
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Trend-Spotting in the Retail Sector

Note from Editor Elyse Andrews: Chloe Lutts, editor of Dick Davis Digest and Dick Davis Income Digest is back writing this month. This time Chloe discusses the boom in retail stocks and an investment for this trend. Enjoy! As the editor of Dick Davis Digest and Dick Davis Income Digest, I do a lot of reading. Hundreds of contributing editors send us their investing newsletters, and I read them all. Reading all these different financial commentators, advisors and investors paints a very interesting picture of the state of the market and economy. They never all agree. Usually, some are...

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Plan Your Trade and Trade Your Plan

May 4, 2010
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Plan Your Trade and Trade Your Plan

It’s earnings season, and that means every day there are stocks gapping up or down following their quarterly reports and conference calls.  Most days, at least one of our recommendations in one of our various newsletters is gapping up or down from the opening bell. In almost every case, the company we’re following will have met or exceeded the official analyst’s estimates for sales and earnings.  And the forecast is usually pretty good, too.  Yet despite this “good” news, the stock can often tumble a few percent, and in a few cases, fall much more, breaking through key support....

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Keep Your Eye on this Retailing Stock

May 3, 2010
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Keep Your Eye on this Retailing Stock

In my mind, the market today is in something of a rolling consolidation–it began two Fridays ago when the news broke that Goldman was being indicted by the SEC on fraud charges.  The major indexes took a hit, but rallied back … before succumbing to some renewed selling pressure early this week. Overall, this is still a strong bull market, but I do think some more potholes are ahead, at least for individual stocks.  Whereas the major indexes might pull back 2% to 5%, many leaders can drop 10% or more, especially with earnings reports flying around. My thought...

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