The practice of economy, directed toward a retirement investment plan in the stock market, is in itself a source of great revenue. It is the art of making the most out of every stock market investment, with the definite purpose or goal being to provide a life that is fully independent of monetary concerns.

But the economy of making each investment in the stock market does come with a price. It will require self-denial (the money invested is not spent for goods or services). Economy and self-denial, I’m afraid go hand-in-hand. To truly benefit from a stock market investment, a savings plan should be adopted and a systematic approach of dollar-cost-averaging (buying the same stock at different prices) should take place; and when the purchase should take place, economically clearly defined.

For a successful retirement investment plan to work in the stock market, some ‘reasonably sure’ assumptions would have to be made:

The retirement investment plan must take into consideration the one prevailing constant in any stock market security – risk and uncertainty. Understanding that risk and uncertainty are the key factors that propels the return on investment in the stock market far beyond the returns of Passbook Savings Accounts, CD’s or Bonds are a start. The plan’s key factor would be to use the risk and uncertainty of a stock market security to its advantage.

I was recently interviewed for a press release through a financial question and answer format. One of the questions asked of me in the interview was: Where do you think the stock market is headed over the next five years?

My Answer; No one knows! There is an old Chinese proverb that goes something like this: “He, who could foresee events 3 days in advance, would be rich for thousands of years.” On a long-term basis I have only witnessed expansion and progress. I believe that to be the nature of our American economy and our American way of life. And as our economy goes, so goes the stock market and I see no reason to change that belief.

Investing in the stock market is not purchasing a stock at 25 dollars a share, hoping it will go to 35 so you can sell it, then hoping it will drop back to 25 so you can buy it back, so that you can sell it again at 35, and so on and so forth. In my opinion, that is gambling. And, I would imagine, some would believe that ANY investment in the stock market is gambling.

We enjoy listening to Beverly Hills money manager Ken Gerbino and not just because of his track record in mining stocks for the last three years. He talks in a simple way that we can understand. We asked him about base metals – and their amazing run over the last six months. Could they be peaking? Ken laughs and tells us "Three billion Asian and Indian people say “no way”". He believes there is a new paradigm of sustained growth in base metals from Asian demand - no more cycles - translating into increased multiples for base metal stocks. And for good measure, he mentions a few base metal companies he owns and why. Ken, we always get our best readership from your articles. Thanks for your time, and your permission to republish. (www.goldeditor.com)

Henry To
There has been much talk lately about Coca-Cola and its potential as a value stock – as it now spots a dividend yield of 2.6% (which is the highest dividend yield since the late 1980s) and a P/E or less than 21 – right at the bottom of its five-year low. Moreover, the current price of approximately $43 a share is also near the bottom of its nine-year range – (nine years ago, the last former great CEO of Coke, Roberto Goizueta, was still at the helm of the company). Sure, Coke has had its own set of problems, but it is a great company, they would argue – and heck, Warren Buffett is also an owner of Coke shares.

Is really not as important as to how you invest in the stock market. And how you invest in the stock market should take into consideration what goals you are setting for that stock market investment. For example, are you investing for capital appreciation or for income through dividend paying stocks? Or is the investment in the stock market for the combination of both capital appreciation and dividend income? Are you investing through a Mutual fund(s) or selecting your own individual stocks?

Tim Wood
The word conundrum seems to be in vogue since Greenspan’s recent testimony before the Senate Banking Committee. According to the dictionary, a conundrum is a riddle in which a fanciful question is answered by a pun or a paradoxical, insoluble, or difficult problem. Another dictionary defines the word as being a dilemma, a question or problem having only a conjectural answer or an intricate and difficult problem. Honestly, I can’t think of a better word to describe the overall state of affairs and problems that the US economy faces. Not only is there a conundrum with interest rates, but also with the housing bubble; yes, the one that doesn’t exist. But what about personal debt, corporate debt, personal savings, inflation vs deflation, the stock market and even with the average person’s view on the stock market?

I’m sitting here at my computer desk with a cup of coffee at my elbow. The coffee rest in a mug, the mug garnished with the words Buy, Hold, Sell, Jump, vertically along its sides. Emblazoned across the top of the cup are the words, Wall Street, which encircles the upper portions of the mug. The handle of the mug is quite ornate, rounded at the bottom, with a cradle in the handle’s top. In the cradle is a die, with a small metal pin through the die, which enables my thumb to spin the die. Instead of numbers, as in a pair of dice, the die’s choices are Yes, No, and ?. And, lo and behold, an article is born.

First and foremost, an opportunistic strategy for creating wealth in the stock market is needed. And the opportunistic strategy for creating wealth in the stock market must have two ingredients, a plan and a goal. The plan must be a definite, concrete plan of investing that would profit you and your family for the rest of your lives.

This opportunistic investment plan you begin should not profit anyone else – not a stockbroker, a mutual fund or a financial advisor. This means you have to have confidence in yourself and in your own judgment as to whether the investment plan you begin has merit. And this means that the investment plan would and should have already been proven to you!