When we hear about Stocks and Shares, we need to know that all of us are affected by this market as the superannuation, or government savings are invested here.  If the market does well so does our superannuation and the government's investments (enables us to receive funding for schools, hospitals, etc), if it does poorly again so does our super and the government.  We need to understand how the market works and how to use Shares in our Wealth Creation strategy.

Publicly listed companies are companies which the public (you and me) are able to purchase some of the company (Stocks or Shares) and become a part owner in that company, in other words an investor in that company.  If the company does well and its value increases, so does the value of your Shares and likewise if it does poorly, the value of your Shares also goes down.  If the make profits, you will earn some of the profits as Dividends.  Simple isn't it?

Think of the share market as a waterfall.  Millions of litres flow down the waterfall to the river below per minute. Millions of dollars change hands on the share market per minute as well.  What we need to do is to learn is to stick our hands out and capture some of that water as it is rushing by.  In the share market, we need to learn what shares will allow us to capture some of the profits and increase our wealth.

With the 2008 Share Market Crash or Global Financial Crisis, how can anyone make money. Well let me tell you that there are many people actually laughing at the moment. "be greedy when others are scared and scared when others are greedy", Warren Buffett - One of the worlds richest men. There are many people now buying under valued stocks at bargain basement prices.

We have seen it, we have been told by all media outlets the it is the end of the financial world. With the financial markets across the US and Europe in crisis, it has rippling effects across the world and even though our financial system is strong and has none of the problems of those in the US we still suffer. So there are many people say all sorts of doomsday stories. People are selling their shares, houses and their children to convert investments into cash and ask questions later. They call it Panic Selling.

People are frightened and as I said before they follow each other (the 95% ie pensioner minded people). This causes a negative sentiment and the stocks are sold off at crazy fire sale prices.  

We have all leant new names Fannie May, Freddie Mac, Lehman Brothers and Merrill Lynch. It are these institutions which have been reckless and lent money to people who could barely afford to pay off there mortgages and when the interest rates went up, they were able to drop off the keys into the bank’s letter box and walk away leaving the bank with the problem of recouping the money. Try doing that here!

Hopefully with the US Fed bailing out the will bring stability, but in my opinion, there will still be volatility for time to come.  

So when we have a major down turn, who is causing the massive sell off the shares, the “Mums & Dads”?

No, It’s the institutions that have some cash flow concerns also liquidating positions and this is causing an "artificially" worse situation on the markets as they try to raise cash. The market is no longer trading on fundamentals - it is trading on emotion. They really are throwing the baby out with the bath water. 

Because of this, they have arranged a price-to-earnings ratios (PE ratio) that are now getting to a 18-year low, but will soon be at a 40 yr low if the stock market does not see a bull market by the time companies start to declare profits in this season, which will hurt the investors selling these stocks now. I can tell you they wont be saying Mamma Mia because they want to see the show!!.  

So you might say therefore everyone must be losing money! Well no!! 

The only people losing money losing money are those directly involved in the selling (realising) their losses. Especially those invested in the financial markets. However, there are hundreds of stocks which are financially sound but due to market sediment people want to sell off and convert their stocks to cash. 

Future Publically Funded Pensioners are selling right now, "Future Millionaires" are about to start buying! 

It's at times like these that you need to keep your head and remember what Warren Buffett has said: "Millionaires are made by people that invest when blood is running in the streets. Paupers are made by those that buy when all looks like wine and roses."

Here are some guides to look for stock which will be useful to keep in mind; 

Extreme value Stocks "The Oversold"

These stocks have:

Good Sales and Earnings Growth
Good Return on Equity
Extremely low PE’s
No Debt at all
Good Earnings surprises meaning they beat expectations
Great business models 

Fast Growth Stocks "Company Continually Growing"

These stocks have:

Excellent Sales and Earnings Growth
No Debt at all
Amazing earnings surprises
Reasonable PE’s
Extremely low Price to Earnings Growth (PEG) ratios
Fabulous outlooks as industries of the future 

The Leaders "The Good All Rounders"

These stocks have:

Excellent Sales and Earnings Growth
No Debt at all
Low Price to Earnings Growth (PEG) ratios
Great business models
Great Earnings surprises meaning they beat expectations
Low to Reasonable PE’s
Great Return on Equity 

All this information is covered and explained with Jules’ Share trading courses and DVD's. I cannot over emphasise how much I have learnt and when I met with a broker who understands how to work with in Jules’ Option and Share buying PARENTS It is almost a fail safe investment.  

But I must stress, there is no get rich scheme, it is all about education that is self-education, learning how it works why it happens and what to do next. Ultimately, you, me or the guy next door is responsible for their own actions and need to be responsible for their decisions. This is where Jules helps you to go through the Parents and decide which option to buy such as a Put or Call, which share to buy for growth, and which house or suburb to park your hard earned money in for your early retirement.