Greetings! We’re very happy to present Carnival of Investing #22! We had an excellent 22 submissions this week, and thank you all for your timely submissions.
Continue Reading 58 comments Sunday, May. 14, 2006
by Chris
Archive for May 14th, 2006
By far the most useful single page in Jim Cramer’s Real Money: Sane Investing in an Insane World is the “Cyclical Investing and Trading” chart on page 115.
Visually the chart looks like a W. It follows the Gross Domestic Product (GDP) growth rate through an economic cycle. The chart also depicts the Federal Reserve’s standard response of either raising (tightening) or lowering (easing) interest rates based on GDP growth. The chart has no explicit relation to time, but these cycles typically take about 7 years or so.
The meat of the chart is Cramer’s suggestions for which types of stocks (or sectors) to buy based on where we are on the chart. So where are we right now?
Continue Reading 28 comments Sunday, May. 14, 2006
by Jason
