Blog : Testimonial, China, Europe, What Are Penny Stocks?
by Peter Leeds on December 5th, 2011
What are penny stocks? What is going on in China? What about Europe? We'll discuss it all today, and explain how it will affect you. And if you don't already know the answer to "what are penny stocks" then you're either new here (which is OK), or you haven't been paying attention (which is not OK).
First, we got a great testimonial from Ryan Cottrell, and what I wanted to do is post it here on our penny stocks blog.
- I'm not saying this Peter Leeds guy has made me a millionaire by no means. However I look at my portfolio and its 100% gains for the year so far and I look at my Vanguard 401k statement and its no gains for the year so far. As an investor coach so far he is the reason I was able to keep my home in my last divorce despite going from 2 incomes to 1. If you have some money sitting around in savings read a couple of his books and capitalize on it instead of allowing the bank too. It gets on my nerves :)
What Are Penny Stocks comments are below, but first here are some points about how China and Europe. will affect you.
In China, the economy has been very hot. It's even entered into what was some pretty serious inflation. That inflation kept climbing, despite China's central bank raising interest rates several times over the last year, and even implementing what were price controls on many items.
That inflation will eventually find it's way here. As it costs more for what goods are made in China, and employees demand higher wages, the Chinese have to charge more. Then when you go to Walmart, you will eventually sees items suddenly costs a little more (or are made even more 'cheaply').
However, China's roaring economic years may be about to get a big test. Statistics are starting to show a cooling off of the Chinese economy. Many see that as a warning that they may send us into recession back here in America. However, I see it more as a lagging indicator, which is based on dropping demand from Americans (and China's largest customer Walmart).
Europe too is looking into the face of what is a recession (they are already in one, but won't admit it yet).
With slowdowns in both China and Europe, that will put pressure on our economy and global trade, potentially pushing us closer to recession. This will affect specific penny stocks, and investors in penny stocks, as well as those Hot List penny stocks we've been profiling. We will consider all the penny stocks on a case by case basis, and update accordingly as the events overseas play out.
Now, what are penny stocks? Click the link, and it will take you directly to our new What Are Penny Stocks page. You probably already know the true definition, and are very likely not even interested in this topic. No problem, I'll see you with our next blog entry, and hopefully on Facebook in the mean time.
For those newer investors looking to get into penny stocks, the first step is to really know what you're dealing with. In other words, make sure to understand what penny stocks are (and what penny stocks are not), because that is how you build an early understanding on which to build your knowledge.
So, if you haven't already seen What Are Penny Stocks, and you are a newer investor, take a quick moment to learn what penny stocks are, and how to profit from them.