Stock Preacher

Gold futures dipped on Wednesday as weaker equities prompted funds to consolidate recent profits, but the market drew support from a renewed appetite for risk among investors. Platinum and palladium, boosted this week by strong July car sales, rose on supply worries because of a possible strike at the power utility in top platinum producer South Africa. Renewed interest from investment funds buoyed commodities and equities alike, as investors focused on economic recovery rather than deflation which had decreased inflation-hedge buying in Gold earlier this year. US December gold futures settled down US$3.40 at US$966.30 oz on the COMEX division of the New York Mercantile Exchange. Spot Gold dipped to US$966.20 an ounce at 3:30 p.m. EDT from US$966.75 oz late in New York on Tuesday.

Popularity: 2% [?]

The US$ hit a 5 month low against a basket of major currencies on Friday and the euro rose above US$1.41 for the first time this year as investors bought higher-yielding currencies and assets on hopes of a global economic recovery. Sterling approached US$1.62, almost an 8 month high, and capped its best month since 1985, while data showing the US economy shrank less than expected in the first quarter lifted global stocks and dulled the dollar’s safe-haven allure. Concern about the expanding amount of debt needed to fund a record US$1.8T US budget deficit added to dollar woes this week and put the benchmark 10-year Treasury yield en route to its biggest 2 month spike since 2004. Those worries amplified a report that South Korea’s National Pension Service intends to reduce exposure to US government bonds and equities in its 5 year portfolio. “There’s a visceral concern about the debasement of the US currency because the United States has a lot of debt to finance” and may have to print more money to do it, said Alan Ruskin, chief international strategist at RBS Greenwich Capital in Greenwich, Connecticut

Popularity: 3% [?]

Penny Stock Diversification Strategy

Diversification is a strategy for reducing risk by spreading your money across different investments. It’s a fancy way of saying “Don’t put all your eggs in one basket” But how do you go about divvying up your money and distributing it among different investments? The easiest way to understand proper diversification may be to look at what you should not do:

Don’t put all your money in just one PENNY STOCK. Sure, if you choose wisely and select a hot stock, you may make a bundle, but the odds are tremendously against you. Unless you’re Stockpreacher (real expert) on a particular company, it’s a good idea to have small portions of your money in several different stocks. As a general rule , the money you tie up in a single stock should be money you can do without.

Don’t put all your money in just one Industry. I know people who own several stocks, but the stocks are all the same industry. Again, if you are Stockpreacher (an expert) in that particular industry, it could work out. But just understand that you are not properly diversified. If a problem hits an entire industry, you may get hurt.

Don’t put all your money in just one type of investment. SMALL CAP STOCK may be a great investment, but you need to have money elsewhere. Bonds, bank accounts, treasury securities, real estate, and precious metals are perennial alternative to complement your Penny Stock Portfolio. Some of these alternative can be found in mutual funds or exchange trade funds (ETFs).

Okay, now that you know what you should not do. What should you do? Until you become more successful in Penny Stock.

Only keep 20 percent of your investment money in a single small-cap stock.

Invest in four or five different Penny Stocks that are in different industries.

Popularity: 2% [?]