Money & Investing - Banks.com

Right now, as the stock market continues to trend lower, could be a good time to get in on some great bargains. However, it is important to choose carefully. One sector that might be seeing some success in the future is the telecom industry. Even though telecom companies (like everyone else) are going through a rough patch right now, things aren’t going to be this way forever. And people are always going to want to communicate with each other, so there is potential for recovery and (probably modest) growth.

In order to invest in several telecoms, from around the world, it is possible to invest in an ETF that offers telecoms. BloggingStocks recommends IXP. It includes telecom giant Verizon, as well as global companies like Americia Movil in Latin America. Indeed, today, while the Dow Jones Industrial Average languishes, heading lower, IXP is gaining.

Exchange traded funds (ETFs)

ETFs offer an interesting sort-of hybrid between stocks and mutual funds. It is possible to gain an investment in each of the companies in the fund, but an ETF is traded as though it is an individual stock, rather than handled in the same way a mutual fund is. ETFs have been gaining popularity in recent years because they are fairly easy to trade, they offer a measure of diversification, and the cost is often reasonable.

Additionally, they have been providing some solid and interesting returns. However, they are a bit risky, and you want to make sure that your investment portfolio can handle the risk. And, if you can take bigger risks, there are new 3X leveraged ETFs that can provide rather large returns (as well as losses).

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.

In the current economy, and with all sorts of worries about the stock market, some people have begun saying that the old rules and the old definitions don’t apply. I say that the age-old rules of solid fundamentals, carefully chosen stocks and regular returns still do apply. Nonetheless, with nothing seeming to work to pull the stock market out of its fund, it is no surprise that there are some definite changes to the way people view the stock market. Here’s my example, using credit derivatives:

Old definition: Surefire way to make insane profits. Don’t ask how, just invest.

New definition: Toxic “assets”. How could all those people have been so stupid?

My Simple Trading System has re-worked some of the common stock investing and market terms we hear to reflect the general cynicism prevailing amongst investors:

CEO –Chief Embezzlement Officer.

CFO– Corporate Fraud Officer.

BULL MARKET — A random market movement causing an investor to mistake himself for a financial genius.

BEAR MARKET — A 6 to 18 month period when the kids get no allowance, the wife gets no jewelry, and the husband gets no sex.

VALUE INVESTING — The art of buying low and selling lower.

P/E RATIO — The percentage of investors wetting their pants as the market keeps crashing.

BROKER — What my broker has made me.

STANDARD & POOR — Your life in a nutshell.

STOCK ANALYST — Idiot who just downgraded your stock.

STOCK SPLIT — When your ex-wife and her lawyer split your assets equally between themselves.

FINANCIAL PLANNER — A guy whose phone has been disconnected.

MARKET CORRECTION — The day after you buy stocks.

CASH FLOW– The movement your money makes as it disappears down the toilet.

YAHOO — What you yell after selling it to some poor sucker for $240 per share.

WINDOWS — What you jump out of when you’re the sucker who bought Yahoo @ $240 per share.

INSTITUTIONAL INVESTOR — Past year investor who’s now locked up in a nuthouse.

PROFIT — An archaic word no longer in use.

U.S. Treasuries are trending higher right now as investors look toward bonds as a way to make money. With the stock market in turmoil, and returns falling in that investment vehicle, many are turning to the bond market. CNN Money reports on the decision by some to engage in the U.S. bond market:

Finding little in the way of return on investment in other markets, investors have placed conservative bets on the bond market. Recession fears and credit crisis anxiety have sent stocks falling in eight of 11 sessions thus far in November. Likewise, bonds have risen in seven of 10 sessions. …

Bonds may continue to rise for the rest of the week, which will bring a number of other economic indicators that are expected to be equally as disappointing. Investors likely will continue to buy up bonds as a safe-haven investment as stocks look for a market bottom.

With the U.S. heading for recession (or already there), investors are starting to look for instruments that are offering any return — even the relatively paltry return of government debt. But they are banking on safety. Government debt is considered amongst the safest of investments, and with worried investors, it is no surprise that bonds are finding popularity.

However, as demand for U.S. Treasuries grows, the yields will slip. Already bond yields on the 10 year note have dropped to 3.63% from 3.66%. And as more people demand them, it is likely that the yields will fall further. As far as your investment portfolio is concerned, it might not hurt to add some of these safer investments to help bring some balance — and some gains.

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.