Mortgage Blog

How do we read the news?

January 28th, 2014 2:32 PM by Eric Fang

Last a few days, I said that I decided to get sp500
index SPY for the investment. The main reason is the
easy of execution. You just need be disappline
and have your own schedule for the purchase.

And also, those companies in SP500 are the best
companies in the USA, and you will not have to worry
to much about them so you will have a peaceful
mind for the investment, and even when the market is
down. And I also don't have the tax issues for the trades.
So I just buy and hold.

For the past a few years, I did find some of the
financial news are "useless". In the beginning of
2012, I started accumulating builder stocks, and
bank stocks. I purchased KBH at 9.xx and then there
was an artcicle about this builder might be "bankrupcy"
soon, and it went down to $5.xx. And then it went higher
after that.

And last year, A purchased AA for around 8.4x, and some
articles saying that this stock will be "dead" because
of the aluminum price and the competition from China.
And the stock was kicked out SP500, and it was up for 30%+
after that.

So I guess it is hard no to be influenced by the media.
I hope I can be immune to the news, if I just trade the
index. It is not bad just to be a "fool".

And today, there is another article of Apple beiing
another Microsoft. First, what's wrong Microsoft?
For MSFT, with 20% return last year, plus the divident
of 3% every year. It is good enough.

Posted in:General
Posted by Eric Fang on January 28th, 2014 2:32 PM

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