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TERADIME MONTHLY NEWSLETTER - JANUARY 2004
If you have entered this websites you are
either an investor, clicked on this link because you like to click on the last
link from the search results in Google, or got this link from your friend or
family member.
It does not really matter how you got
here. Welcome! It is a pleasure to have you as a
visitor and maybe a potential client in the future. What are we all about? Why do you want to keep reading? How is it relevant to you? Why should you
care? We have started this website to help
long-term investors (not short term market speculators) invest their retirement
money �safely� and maximize their profits doing so. None of the people running this website
have degrees in economics or finance (at least not yet). So don�t you worry, we are not going to
sell you a stock, a mutual fund, or just take your money and claim it was some
ridiculous fee. We are techies (engineers, computer science,
and math majors). Instead of
spending our time working to save the world and help our society we have decided
to spend our time figuring out how to beat the performance of major Financial
market indexes that everyone invests in like: S&P 500, NASDAQ 100, and Dow
Jones Industrial average and help the average investor. If you lost your money during the tech
bubble and would like to make it up in 3 month by getting a hot stock tip, stop
reading this now, this is not for you. Click on the back button of your browser
and have a nice day J However, if you are concerned about your
retirement money that you have to manage because your company does not provide
you with the pension plan, and the only hope for the future is your 401K, IRAs,
social security, and some taxable accounts that you currently have, then keep on
reading. Two things that I have figured out 10 years
ago when I finished college and start working for a living: social security will
not be enough, and 401K is a great retirement tool if you know how to use it and
is willing to spend time tracking mutual funds and understand the whole concept
of asset allocation and investing in general. About five years ago I figured out that most
of the people do not want to manage their money, do not understand (or do not
want to understand) the risks associated with investing. They always buy in the worst possible
time and they always sell in the worst possible time. And about 3 years ago I have figured out
(and this is scary and encouraging at the same time) that most of the
professional money managers do not know more about investing then I do and in
most cases know even less. Well we
all know why it is scary, because these are the guys that manage our 401K mutual
funds and it is encouraging because since they are so ignorant, we will be able
to beat them at their own game.
I have been investing in stocks over 10
years now. I have been speculating
for about five. I have learned
fundamental and technical analysis.
I know how to loose and how to make money. Talking to my friends and most
importantly talking to the friends of my parents (the baby boomers) I have
learned that people want to invest, but they want to invest with the tolerable
risk and in something that they can understand. That is what we are trying to do
here. If you are still interested,
then keep on reading. As you know (and if not, you will know in a
second) less then 1% of mutual funds can consistently (year, over year, over
year,�.) beat performance of their respected indexes (S&P 500 is mentioned
many times for the large cap mutual funds, tech mutual funds should be compared
with NASDAQ 100). So, the rest of
us unlucky 99% have to be happy with sub index returns. So, when people ask me
if they should invest in �the market�, I always ask them the following question:
�what is your expectation of market returns?� If they tell me that they want to
double their money �fast� (whatever fast means), I tell them that they should
not expect more than 7.5% annualized return. That means that you should not expect
your money to double before 9 � 10 years of investing. If you doubled your money
in 5 years, then expect to give the most of it back during the following 4 � 5
years. Here is my reasoning for the
7.5% return: Average Inflation rate of 3% + GDP growth of
the USA of 3% + 1.5% dividend rate per year = 7.5% return. That is realistic to me and I will be
happy with this return if I do not have to live with the market risk. So, in my book if you can find a �safe�
7.5% annual return � take it! One of the �premium features� (that means
you will have to pay for the info) of this web site is the buy, sell, short, and
cover signals that we issue against the NASDAQ 100 (QQQ). We have developed a technical system
that tells us (and you, if you which to join us) when to buy/sell (short/cover)
your investments into these indexes.
Do not worry, you do not have to trade everyday, sometimes not even every
month, actually if you followed our system since 1994 and applied it against
SPY, you would only make the first trade to sell SPY in
1998. So, if we can tell you that by smartly
investing in these low cost financial instruments (ETFs � electronically traded
funds) like SPY, QQQ, and DIA you can beat performance of these indexes over the
long period of time (7 � 10 years) by timing your purchases and minimizing
risks, plus we will tell you how to do it on a cheap (low commissions or no
commissions at all), you should be saying to yourself right now, so how much
does he want for this services? For subscription details and other
premium information click here *** But, before you buy anything, what can you
have for free (I know, we like free stuff too)? You can explore this website, get some
useful financial information, and send us an e-mail. As you learn more about this website you
will understand that minimizing the risk while outperforming the markets is the
most important part of what we do.
You will find basic, but very useful financial advice, explanation of
many financial terms and hopefully let us know how to make this website more
useful. Thank you
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