Monday, June 18, 2012

Tiger Woods loses - Stock Market Mixed

Tiger woods comes in 21st place in this past weekend's U.S. Open.  Why is this relevant?  It isn't.

Actually the reason why I am mentioning this is because last week my instructor told me that every time Tiger Woods won a major golf tournament the stock market rallied.  I apology to my readers who probably would have wanted this information prior to today.

Tiger woods however didn't win...so it didn't matter.  In the class he mentioned that correlation does not necessarily imply causation.  You can Google what exactly that means.  The point is that many times people will come up with these theories of why something happens.  In the end it probably boiled down to chance and luck.  Many people will try and sell models on how to get rich in the stock market.  I've seen several of them.  Wade Cook had a model he was using that ran into difficulty.  Bernie Madoff had problems with his stock market model (because his model was a Ponzi Scheme).  I've used the Ron Groenke's stock market model.  His model was ok.  He wrote a book that I recommened reading "The Money Tree".

This book outlines in a useful story how stock options work, and how it can help increase your returns, and help lower your risk.  I do not agree with the entire approach, but it allowed me to learn about the potential, and research further.  As always I suggest you do the same.  Or you could continue to invest on whether the groundhog sees its shadow.

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