Posted by: kewlio February 17, 2006
SIRIUS down almost 7% today
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This is one of those I-told-you-so posts. I did say in the past that SIRIUS was built on hype and I seem to be correct about it. In January, they announced subscription number of slightly greater than 3.3 million. Today's announcement tells us that it is in the ballpark of 3.31 million. So SIRIUS failed to deliver miserably. XM has been dropping like a sack of hot potatoes. SIRIUS isn't doing that good either. Might I suggest INDEX FUNDS for people who really want to make some money in the stock market? INDEX FUNDS are guaranteed to return market average. Say the index fund is tracking S&P 500 index. What this means is that if S&P 500 increases by 10%(which has been the average return in the past), your investment will increase by that margin for sure. There are hardly any INDIVIDUAL INVESTORS who have a track-record of beating the market average. It is almost impossible to do without CAREFUL study of the market, which us amateurs have no time to do. Therefore, index market is the best idea. With the market crapping lately, it might just be better to put your money in a savings account in your bank. The market seems to be bearish. But I'll put about 10K in the index fund in the near future. I have 10K in money market, and that money seems to be going nowhere. Investing in the STOCK MARKET is GAMBLING. The market is highly efficient. There is no real way you will make money unless you go for INDEX FUND. That's the bottomline. And even then there is considerable risk. Who knows, the market might never RETURN TO NORMAL.
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