Money & Investing - Banks.com

Yesterday, the stock market was looking somewhat pessimistic. The $700 billion bailout package was hung up in Congress as lawmakers questioned certain aspects — including the power that Treasury Secretary Henry Paulson was asking for.

However, after President Bush’s speech last night, things look a little different. He offered some key concessions that lawmakers wanted, and generally expressed his desire to do whatever it takes to save Wall Street. CNN Money reports on the effect that renewed confidence is having on the stock market:

But Thursday brought optimism that a modified form of the deal could see passage, following President Bush’s speech Wednesday night and comments from congressional lawmakers.

That optimism countered the session’s negatives, including GE (GE)’s warning, a seven-year high for jobless claims, weak durable goods orders, a report that showed new home sales fell to a 17-year low, and a falling dollar.

But how long will this last. Is it just so much “confidence”? How are the fundamentals? It is important to carefully guage these items, keeping a cool head during this crisis. Now is not the time to go with the trend of the moment. If you are a long term investor, now is the time to take a deep breath, and look for bargains — as well as review the fundamentals of your portfolio.

Today’s stock market rally could give way to more pessimism tomorrow. The story could change by this afternoon and the market could head further down. It is difficult to truly predict the market in the best of times, and during volatile times like this, it is all but impossible. So use your common sense and do what you can to limit your losses and prepare for the future.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.

Tags: stock market, stock market news, investing blog, Bush speech,
economy, investments, financial crisis

With the volatility in the US stock market — and in other investments — many are wondering if something more tangible would make a better investment. Gold prices have been trending higher overall since last summer, and that is leading many to use gold as a safe haven investment. And some are making this transfer easy, through e-gold. Indeed, that is the subject of this reader question:

I have been hearing about e-gold from a friend of mine. Should I invest in e-gold?

E-gold is a way of transferring gold, via the Internet, between different owners. Users can transfer gold ownership — the metal itself is stored elsewhere. This is an interesting way to invest in something tangible. And for some people it can work. But you need to be very careful.

E-gold is subject to a high number of scams. These are often known as high yield investment programs (HYIPs), and they are actually very similar to pyramid schemes. The idea is for you to invest, and the refer friends, and then get even more.

Additionally, you should be wary of unsolicited emails, offering such “investment opportunities” as alluvial gold and other similar programs. (Note: Any unsolicited emails offering “great investment opportunities” should be ignored — no matter the market or investment.)

E-gold can work for some people. But it is still a risk. And you should never invest in e-gold — or anything else — merely because a friend asked you to. And certainly not if there is a “referral program” involved for an individual investment.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions.

Tags: e-gold, invest e-gold, investing blog, investment opportunities,
HYIPs, investments, investment scams