The Stock Market: The Contrarian Approach

The contrarian approach refers to going against the herd. It refers to buying when most investors have gone into panic selling, and selling during a bull run in the market. The contrarian approach operates on the foundation of investor psychology, temporary events in companies, economic cycles of businesses or information that alters the fortunes of a stock, at a particular instance.

How Does It Help?

Contrarian investing means going against popular consensus. Many people who have enjoyed massive success in the stock market are contrarian investors. Here are some of the approaches.

Buying When Everyone Else Is Selling

During a crash, this is quite common. Market crashes usually take down all stocks, even the stocks of companies that are financially sound. A contrarian investors monitors such stocks, and once the market crashes and there is panic selling, the contrarian investor will buy as much of the stock, as possible. Also, if you had the misfortune of getting caught up in the wrong stock investment(s), and have exhausted your financial resources or credit – you’d be well advised to go to to get your finances back in order.

Selling When Everyone Else Is Buying

An easy way to determine if a market is about to peak, is when investing in IPOs catches the fancy of investors, and there is talk about getting 100 percent returns from the stock market – in just a few months. During such phases, IPOs seem like the next big thing, but the truth is that it is an indication that the market has reached its peak – and is about to plunge.

When Should You Take The Contrarian Approach?

Adopting the contrarian approach requires an understanding of how the stock market behaves, with the use of diligence, a lot of patience and a bit of luck. This approach requires basing your judgment on cold hard numbers. For instance, during a general macro-economic event, the market will beat a company that delivers 30 percent returns over the past few years. This could be the appropriate time to buy such stocks. Similarly, a prolonged slowdown in a particular commodity could be a good bet, if you have an understanding of the commodity cycle.

It should also be noted that, in preparation for the volatility of the stock market, deep confidence in one’s own financial standing, is critical; so, one must take stock of the liquidity of their funds, as well as, the status of their credit; for those who feel their credit will be an obstacle to successful investing, they will find a wealth of information to rectify this, at

Key Things To Note If You Are An Investor

The first thing is that the contrarian approach does not mean that you automatically go blindly against the herd. It simply refers to not being swayed by the prevailing sentiment in the market, wherein investors start buying overpriced stocks or selling good ones. In some instances going against the crowd can be disastrous for you.

The second things is that, this approach requires a great deal of patience. The backbone of the contrarian approach is investing in underpriced stocks or stocks that have fallen out of favor with investors and waiting for their prices (patiently) to go up. While you may be lucky and they might go up in a matter of days, it could take several years for this to happen. There is no substitute for patience.

Also, be mindful that one who is skilled at using the contrarian technique, may resort to using borrowed money or money from other investors (a hedge fund), in hopes of racking up massive capital gains; investors of this type must, nonetheless, proceed with caution, as the contrarian approach is a long term method, thus increases the likelihood of running out of (borrowed) funds, before seeing any capital gains, at all.

There have been numerous instances where, attempts to sustain such levels of investment activity (over such long stretches of time), resulted in acquiring remarkable amounts of massive debt – making whatever capital gains acquired, inconsequential; if you find yourself at the beginning of this stage, can show you how to minimize debt. ..You may also want to consider re-adjusting your investment approach, altogether.

Finally, the contrarian approach is not an approach that you reject or adopt, as per your convenience. It is a long-term approach that you need to adopt as part of your investment arsenal, if you wish to adopt this investing philosophy. A huge number of investors that want to adopt this approach, go against the crowd and buy a particular stock, only to end up losing their patience, once it dips further in price. Always keep in mind that identifying (precisely) the turning points in the market, is impossible.

To sum up, the contrarian approach is one that can help you enjoy a great deal of success in the stock market or any other financial market you may desire to partake in. As you can plainly see, it is an approach that requires a good deal of patience, but is one that will help you enjoy massive success in the stock market!

How The Rich Get Rich And Why The Poor Stay Poor

Today, economic inequality consists of disparities in the distribution of income and wealth, for the overall population. There are many reasons why economic inequality is happening in society: inequality in wages, labor markets, globalization, education, technological changes, racism, culture, gender and many more. So this is why people do not have the same status in life, in our society.

Everyone wants to be rich, but not all people can achieve it – so they remain in financial mediocrity or (at the very least) become poor. But why do some people have their own wealth, and others don’t? Undoubtedly, there is a fundamental difference between the rich and poor – such that it translate into different levels of success.

Most of the rich people have the ability to generate astonishing things in their lives. While those people with less money, seems to be stuck with piles of bills and getting harassed by debt collectors, like west asset management.

But why is it that the rich get richer, while the poor stays poor? Listed below are the fundamental differences between rich people & poor people:

  • A rich person creates a specific direction in life, and subject themselves to a certain (high) standard – while a decidedly poor person does not have control of their lives (at least, not at the level they would like, if they wish to acquire wealth). Creating the life you desire will help you to conceive what you want, and set yourself up with numerous opportunities to get it. Most poor people just want to live in this world, without thinking what will happen for the rest of their days; while wealthy people (or those who aspire for wealth) think big, get rid of debt collectors (allied interstate, for example) and have a strong desire to become a better person in the world.
  • Poor people think they are small, while wealthy people dream big. Most poor people don’t want to dream much bigger than they normally do, because they think that there is a nobility to being poor (since many poor people think you have to do underhanded things, in order to become wealthy). But rich people don’t think like that, they understand that the acquisition of wealth depends on adding value to other peoples’ live; as a result, the path to wealth, actually involves helping people along the way!
  • Many poor people simply lack the drive to win, while rich people play to win. The rich people are trying to search for ways to win when it involves money; while the poor people keep themselves busy, worrying about the little money they have (scarcity), thus, never putting themselves in any position to be a wealthy person.
  • Obstacles vs. opportunities. Poor people seem to give more focus to the obstacles, rather than the opportunities (for example, a debt from cach llc can appear as an obstacle, or an opportunity to financially grow). Rich people tend to provide more focus to the opportunities, and deal with all the simple obstacles they encounter along their way to success.
  • Set goals to commit to. Although poor people are dedicated to the day-to-day things, they don’t commit to dreaming of wealth, and aligning their mindset & actions with dreams of wealth – they passively hope that riches will find its way to their doorstep; while rich people do an excellent job at deeply committing themselves to achieving their ultimate financial goals, however long it takes.
  • Peer groups matter. Have you noticed that rich people hang out with other rich people, too? So it is better to ‘level-up’ your peer group. Poor people can hang out with wealthy people, thus, inspiring them to work harder to financially to succeed.
  • Wealthy people constantly learn. Rich people are eager to learn new things, especially in regards to making more money. They keep on learning and finding new ways to become more successful in life; while the poor people are content with what they know, along with being content with the little desire they have to expand their knowledge – so, they stop learning. Their desire to acquire wealth does not push them to further educate themselves in matters financial; thus, they cut themselves off from the ideas or distinctions that would have help them arrive at a better financial status.
  • Poor people lack drive, while wealthy people are hard working. When it comes to solving some difficult problems, poor people tend to hope someone will solve the problem for them or (at th very least) avoid the problem, altogether -in hopes that it will solve itself; rich people never get bored with solving problems, showing that they are still confident and willing to recognize that facing their problems head-on, will bring them one step closer to success (regardless of how tedious the problem may be).
  • Poor people follow the family route, while rich people take the risk of breaking family tendencies, that don’t serve them nor serve their desire to achieve their goals. In a poor family, if your mother is teacher, you were also groomed to be a teacher; while men & women who aspire for wealth, don’t care about the kind of job their parents had and take the chance to gamble on themselves, and create a path of their own!
  • Poor families tend to have many children, while rich family tend to have less children; this is why poor people cannot send their children to school, while rich family can give the best life to their (fewer) children.

If you want to be a part of the rich group someday, you need to set a goal and plan & work towards it – EVERYDAY. Don’t blame others for you poor financial status. Instead, reflect on yourselves and what you really want out of life. Remember, there are always chances to make your life different – the answer is in your hands.

Just develop the habits and attitude to dream, plan & work towards improving your financial status. It’s not too late to start! You will be amazed at how fast things turn around. Start your dream today to change your life, financially!

Getting Financing For A Used Car

Many people attempt to buy used cars to limit the vehicle cost. It is practical to buy a used car for less auto financing. However, buying a used car can (still) be very expensive that even the buyers are required to finance them. Used car auto financing is also available in dealerships – and in the private lender sector. To successfully finance a used car, several things must be considered and applied. If you are trying to think of when the right time is to get auto financing, try to study the basic concepts that is needed for the loan. Auto financing, for a used car, may require a direct loan. And since gaining access to a loan is dependent on your overall credit, you may need to clean up any blemishes on your credit report that may impede your chances of being approve for a loan; one way of doing this, is by using a goodwill letter – for more info go to:

For a direct loan, a copy of credit scores and credit reports must be obtained, prior to the process of applying for financing. Undoubtedly, the lenders will be using your credit score and credit reports to identify your loan application will be granted, along with determining what kind of interest rate will best suit your offer. If you have a credit score of about 680 or higher, you are appropriate as prime borrower, and are likely qualified for the best monthly interest rates that are available. The higher the score, the more chances you have of negotiating the lender down to lower monthly interest rates.

Contacting your credit unions and local banks will help you find the best terms and interest rates that are currently offered for used car loans. Several lenders offers five year loans (provided that the car you are trying to buy is not more than five years old). The vehicles aged at more than five years, are only qualified for a one to two year auto loan, once it is financed by the lender. Lenders are also careful in giving financing to older cars, since it may not last for another five years. The lenders usually set a minimal mileage restriction, and will never finance any salvage-titled cars. Basically lenders will fund the vehicles that are purchased on a franchised dealership, and not with an independent dealer or private party.

Try also to shop around for several lenders that offer different quotes, before entering a loan. The interest rates that are usually offered for used car auto financing, are about four to six percent higher, as compared to the new car loans. You can also ask the lender, on the rate that are offered, for a pre-qualification letter that outline the terms and conditions incorporated in the loan. Bring the letter to the dealership, when you’re shopping for a car. Give the lender all the information of the care you are trying to buy. These may include the model, the maker, and the VIN number. If the car-buying process is being impeded by collection agencies that are trying to sabotage your credit rating, or any other form of harassment go to to find out how to get rid of them, once & for all!

You may also consider other things, as you seek auto financing for a used car. Aside from the direct loan, there’s also the dealer loan; in this loan, the monthly interest (that are offered by the dealerships) are a bit higher, compared to the interest rates from direct loans. With dealer loans, the dealer can finance any used car, regardless of the car’s age. You can consider this, if your application in the direct lender was denied.

Be sure to verify that the dealership generated the correct monthly interest rates that were based on your existing credit score. The dealers may sometimes pad the interest rate and charge you for a bit higher interest than what you qualified for. It is necessary to know. not just your credit score, but also the interest rates that you are eligible for, based on your credit score. Offer an initial payment in cash or an equivalent trade of ten percent, in the car’s purchase price. Go to if you have an old debt that is keeping you from purchasing your used car – if the debt has expired, you can have it deleted!

Cars are depreciating assets – this means that a negative equity can become an issue. Offering the initial payment for, at least, ten percent of the vehicle’s purchase amount, will not just increase your chance to be approved for the loan, but will also minimize 2011_Lexus_IS_350_013the risk of becoming an upside down on the newly purchased car. Used car auto financing is the best way to buy cars. It just requires several steps to achieve the best deal you can have for a loan. Auto financing became popular in the car industry. Once you have prepared the necessary credit information, it may just take for about ten minutes to get a decision, and rate for the car loan application.

The fastest access to financing, to get a vehicle, will just take one to two days, and a variety of options are included. Overall, for (used car) auto financing to work, a lender needs a strong financial incentive to push through the application process, and verify your credibility, by way of your credit score.