Back in 1979 I was first encouraged to invest in stocks (as opposed to the GICs and CSB I held). The subject was introduced by the question "Do you know how to read financial statement?" , and I was handed a small pamphlet on the subject (reading FS's).
At that time there was no self-help industry promoting the classic investment bibles or the undending stream of beach-reading to 'educate' investors. The media did not print canned advice and there was no 'financial advisor' industry promoting asset allocation and rebalancing. I read the pamphlet and then enrolled in a night-school class on book-keeping.
I continue to think that THAT path of knowledge was and is the best approach to stock investing. If you will only be buying ETF's of large indexes then there is no need to read any of the publications listed by the others. But is you want to buy stocks, then you need to read financial statements well.
I strongly agree.
Originally Posted by leslie
I've read a couple those books and would like to add that reading CEO/CFO comments will tip you to problems. If it's good it will be as clear as glass and if theirs a lot of word smithing, you just can't understand, then read the statements with care.
After you do some research, I would suggest following major news sources on the market to gauge where to invest. You can also take numerous volatility indexes like the VIX, the Chicago Board of Options Exchange volatility index, into consideration. Here is the cboenews site with great information on the market volatility:
Originally Posted by waterboy4800
CBOE Volatility Index (VIX) one year after the financial crisis: where its been, where is it now and what is says
Hope this helps!
advocate of cboe
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