Stocktoberfest: The Market’s Bermuda triangle – October 2011

Well, clearly September 2011 was a dog of a month for stocks. The jobless economy as well as the engulfing hurricane that is the Euro had all of us on the the edge of our seats and surrounded by bits and pieces of nail fibre. Simply put, it was the worst quarter since 2008.

Now that we have moved into October, or as we have pithily named it, “Stockoberfest”, what does the first month in the financial year hold for us.

Well, let’s start by seeing what little, unwanted presents October has given us before.

So, October has gotten itself a bad rap as far as investors are concerned. In actual fact, since 1958, October has been the 6th best month out of the 12 – right in the middle. Sixty percent of all Octobers have resulted in a gain. In reality, the worst months are February and September. But we all know that losing money – and in the worst possible way imaginable, always makes a scar that eclipses the fact that October is usually a month with slight gains.

September this year has seen us teetering on the edge of a precipice called “The Recession”. During the writing of this article, stocks are slowly rising in response to the recuperation of the Euro – but we’re still a long way from being safe.

There is another kind of stock that you may be able to get some traction from. You’ll have to have a little extra money that won’t kill you if you lose it all, and the great news is that this kind of stock can gets you some incredible gains. It is fast moving, volatile and very cheap to buy!

I’m talking about penny stocks.

Penny stocks are traded on the OTC. The companies that issue the stock are far more agile and nimble than the more larger and established companies, and also they are not hit as hard during an economic downturn. Of course, you’ll need good advice on which companies are making gains (that is where stocktips comes in) and track their progress for a while before buying their stock.

Some of the fields that are doing well in penny stocks are mining (things like gold, copper and other commodities found in the ground), Bio-tech and high tech. A simple search on the Internet will reveal lots of companies that are new or starting within these fields – the ground floor with a burgeoning company with lots of potential is where you’ll want to put your stocks.

If you want to be sure of the credibility of a company, you’ll know that we’ll be researching all that for you, as well as giving you companies you may not have heard of before.

Here’s wishing you well and happy investing in Stocktoberfest!