Interest rates

Interest rates, interest rates, interest rates! Why do they matter? Well many investors concern themselves with interest rates because the supply of money is dependent upon them. So when the fed (the federal reserve) raises rates, money is more expensive. What does that mean? Simply put, its more expensive to borrow money. Raising rates can be both good and bad. Raising rates has a positive effect on the economy because it shows the fed's confidence in the economy. Basically they see that the market can handle the increase and this also deters inflation. A negative side to raising rates would be the obvious of more expensive loans, but it can also be raised too soon and limit the supply of money. Typically rates are raised when an economy is doing very well... almost too well. So they raise the rates to control growth as not to let it get too big where it can't stand on its own weight. In future posts we'll cover interest rates more in depth and the effect on our current economic situation! Join me for more market gems!

Bottom?

I'm sure everyone is wondering if we have hit a "bottom". Many newscasters agree that we have indeed hit a bottom but what does that mean? Simply put, the worst of the damage has been inflicted. But does that mean that I can start investing now? Ehhh lets take a step back. The market has been incredibly unpredictable lately that's for sure. Even so, many people still want to get back into the "game" so they can make some extra cash. So how are we to know when the market has leveled off and steady streams of income can be made? Well, instead of looking at the market as a whole, we will explore specific segments of the market to determine if they are still in "recession mode" or "Profit mode". (Many market junkies like yours truly will call winning stocks "Bulls" and loosing stocks "Bears")
The aim of this blog is to make YOU into a smart investor that will make smart decisions while investing. I believe there are segments of the market that are profitable and more specifically certain stocks that can still generate an income. Join me in future posts as we explore these hidden gems!

The begining

Welcome to the start. You want my opinion on the market, and I'm going to give it to you. I'll analyze market activity and summarize it for you in plain simple English. I'll also add my own humble insight into where I think the market is going and try to figure out whats going on. I'd like to add that I'm just a normal guy with a business education. This is why my posts will be simple, insightful and to the point. (I don't take any responsibility for your own investing decisions) But I will offer my own insights and thoughts about the economy and the market. Lets get started!!!