Firstly, I would like to thank all the new subscribers and wish everyone lots of success.
The goal of
BuyActive.com is to help people. By gathering as much information as possible,
and giving warnings about stocks, people could then better decide which stocks to buy or avoid.
Caution is still to be exercised and our word of advice still remains the same. DIVERSIFY! DIVERSIFY!
EXTREME POTENTIAL DANGER
HOW THE SUBPRIME SELL-OFF HAS CREATED TWO MARKETS
One Market will make you rich
The other will leave you penniless
Dear investor:
The Wall Street pros are in the process of moving their money around in anticipation of a crashing economy.
They will bid up financial stocks, hoping for more rate cuts. And they’re going to butcher the stocks
that are dependent on spending by the middle class and the working poor.
The subprime sell-off is about to split the Stock Market in two.
On the one hand, the fortunes of millions of investors will vanish. As consumer spending declines,
entire sectors will be abandoned and earnings will dwindle.
On the other hand, for the companies that will prosper, earnings will increase, and investors will be enjoying
their best returns since they will be the ones protected from the liquidity epidemic resulting in millions of poor.
This special alert gives you the oportunity to choose which Market you wish to invest in…because both markets will be
competing for your money. Unfortunately, thanks to the market
chaos ,you won’t be able to tell the difference until
it’s too late.
Ben Bernanke will not stop the dollar’s fall. In fact, he cannot—without raising interest rates and crushing
the already trembling housing market. As awful as the sub prime mess is right now, I hate to think what could
happen to U.S. markets if rates rose. The recent interest rate cut leaves no doubt: rates won’t rise, and
the dollar’s downfall will continue.
BOOMING CHINA
Right now in China, over a billion people are flooding the stock market with cash. And a lot of it. China has
become a country with some of the most billionaires in the world. The government is powerless to slow down growth
and the Olympics are less than a year away .
Recently, while Wall Streeters concentrate
on the subprime mess… Well-run Chinese companies are soaring 10% to 20% a day.
Yes, a day
The two-digit explosion of China's economic growth and the booming stock market have made a new group of
wealthy Chinese. According to the latest top-400 wealthy Chinese list published by Forbes China, the total
assets of the persons on the list have reached 280 billion dollars, while the figure last year was only 164
billion dollars.
The top-66 have a personal asset of at least one billion dollars each, while last year only the top-15 reached
this level. China has truly become one of the countries with the most billionaires in the world.
A GOOD SOLID LONG TERM PERSPECTIVE
We strongly believe that you need to have a portfolio of solid stocks. To be a successful investor, you need to
have a long-term perspective and the ability to ignore short-term movements.
At the end of the day, we
all invest with one goal in mind: Buy a stock at one price, and then sell it later at a higher price. Therefore,
the price we pay should always be the first and most important consideration. However, since no-one can
accurately project a company's future earnings, it is important to leave some room for error, or margin of safety.
In conclusion, look for mature, well-run companies, with good cash flow visibility, high returns on capital, and
sustainable, competitive advantages. When you do find companies like this, resist the urge to get caught up in
day-to-day fluctuations.
