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Seizing Opportunity Investing

03/12/07 - 12:46 PM EDT

Gerald Appel

Numerous opportunities are available, even within the American markets, with which many -- probably most -- investors are unfamiliar. Did you know that you can buy certain mutual funds that will provide you with $1,000 worth of high-grade bonds for as little as $850? You can receive interest on $1,000 worth of income investment while paying as little as $850. (There are some mutual funds whose pricing means that you will overpay. In Opportunity Investing, you will learn how to tell one from the other.)

Are you familiar with the only investment guaranteed by the U.S. government to provide a rate of return that is greater over the years than the rate of inflation? (It's perfect for many retirees.) Do you know how to alter your portfolio mix as your financial situation changes? How much capital will you need to maintain your lifestyle during retirement? Do you know the differences between the typical Fidelity open-end mutual fund (or funds from other management companies), exchange-traded funds and closed-end mutual funds? Do you know when to buy one and when to buy the other?

I mentioned before that Opportunity Investing will provide tools for knowing when to buy and sell as well as what to buy and sell. For mutual fund investors, this book provides a great technique for monitoring the relative strength of available mutual funds so that you have a disciplined way of selecting and remaining with the winners while knowing relatively early when your holdings are weakening and should be sold.

For stock market investors in general, this book shows readers how comparisons between bond yields and corporate earnings may be used to decide whether stocks are undervalued -- great for buying -- or overvalued and risky.

Long-term investors will be interested in the 28% New Highs Indicator, which has had an exemplary record of providing accurate signals that major bull markets are under way. They will also be interested in the 90% to 80% New-High/New-Low Ratio, which has had an outstanding record when it signals very favorable intermediate stock market conditions.

Opportunity Investing is an easily read book that presents a multitude of useful strategies for successfully navigating different investments within a multitude of investment climates.




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TheStreet.com has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from TheStreet.com.

Gerald Appel is a world-famous author and lecturer. A frequent guest on television and radio, he has appeared on Wall Street Week with Louis Ruykeyser and his articles and/or articles about him have appeared in Money magazine, Barron's, Technical Analysis of Stocks and Commodities Magazine, Stocks Futures and Options magazine, Wealth magazine, The New York Times, Forbes, Kiplinger's magazine and elsewhere. He is the founder of Signalert Corp., an investment advisory firm that manages more than $350 million in client assets, and he is the author of numerous books and articles on investment strategies, including "Technical Analysis: Power Tools for the Active Investor" (Financial Times Prentice Hall, 2005).


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