Stock Tips - SELL EVERYTHING...

Remember I would be providing you guys with stock tips? Here's my tip... SELL EVERYTHING YOU HAVE!!!

alternatively, you can start keeping some money to prepare to go into the market. From my understanding, the market seems to be overhyped and is destined for a correction in the short run. There was a study that was posted recently (according to my boss) that shows a trend for stock prices. According to research, instead of the old saying "sell in may and go away", there is a statistical prove that within a year, stock prices tend to rise all the way till 15th of July. From 16th of July to the 3rd week of october, stock prices generally head south before rebounding to a level higher than 16th of July before year end. This upward trend will continue till the next year's 15th of July. Of course, i guess 15th of July is not the exact date but the approximate date.

Before you go off thinking that this is total bullshit, i did ask my boss whether this has any logic to it. My boss has a theory with regards to the cause of this trend (which sorta sounds logical). According to him, people receive their bonuses (or bond coupon payments) in the early part of the year and they tend to reinvest these bonuses in the stock market. As such, this causes the stock market to rise. Then why the downturn in July you may ask. We all know that the general holidays for the western countries is between July to October (this is the western countries holiday season, note: not festive season but holiday season). Since they're not in the country, they probably don't trade as much. Thus, there is a lack of support for the stocks resulting in the eventually downturn. As their holidays end, and december arrives, its time to support the market before the year end so that to show positive returns over the year.

Since today is already 17th of July, the stock market is destined for a downturn... The market seems quiet and heading south these 2 days... So what do you guys think? Do you think the above is logical? haha...

Anyway, there is another side to the story. The economy is recovering and many companies are going to post their half year / end year results this coming august. As these reports come out, there are high possibilities for these companies to post "more than expected" earnings and cause stock prices to climb. However, my personal opinion is that many people are "expecting" a lot and thus it is difficult to achieve the "more than expected" earnings. Nonetheless, if we were to see a market correction before the annual reports are posted, there is a possibility that these reports might lead to higher stock prices...

you can decide for yourself which to believe...