Tuesday, September 18, 2012

Dark crystal ball

While early results of earnings season may not give more investors rejoice, there is a good diversion for scholarships May and June sell-off.
As summer vacation much needed, it may be just a penny stock investor needs before entering the break fall season trade. But until then, we must cross the turbulent season results.

Now, I'm not sure if your stock favorite penny company announced its quarterly results yet, but I noticed that there seems to be something missing at the end of (some) reports. This is how me the ability to predict the future more difficult.

Generally, at the end of the interest, you are finished with the "expectations" teasing or "outlook" for the next quarter and sometimes the rest of the year. Something that will make us stand with them against all odds.

Unfortunately, the vagaries of the market and the growing geopolitical tensions make it difficult for companies to predict what happens in the fourth quarter to quarter.

Lebanon can not be an economic power that is part of your water cooler jokes ... But Israeli shelling last week was enough to shake global markets. In addition, oil prices reached a new record and the VIX index of U.S. stock market volatility has risen by 29% within a week.

So hard enough trying to accurately predict how your business will make quarter to quarter, in good times. Add to this the growing tensions in the Middle East, and the depression market, and this hurricane season as well, and you have a dark crystal ball.

Why? When consumers are challenged by rising prices and pay more to borrow, and investors fear that they will have less to spend, and reduce the overall demand for goods and services. On the other hand, you need some companies to absorb higher costs without scaring off customers. And customers like you and me are those that affect the company's profits.

However, should investors in securities shark was very nervous tension in the market. Penny Stocks companies, by their very nature, can take advantage of the changing economic conditions and opportunities better than big companies.

The nervous market means that there is still a lot of good buying opportunities in the market. There is a clear strength of oil and gas and precious metals. But for investors penny stocks, you want to find something that is clear. Or at least not clear to the rest of the herd investment.

Predict the future of the stock market on a daily basis is hard enough, let alone try to guess what you will do a quarter, unless your name is Marty McFly, you have Lorean De, and 1 flux capacitor. In this case, we need to talk.

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