Wednesday, December 24, 2008

Make Money At Home (The 90’s Internet Bubble)

Make Money Online (The Burst of the Century)

Stock market trading in the United States can be traced back to over 200 years ago. During this time, there have been a few notable peaks (bubbles) and valleys (crashes); two (2) of the most famous stock market bubbles of the twentieth century were due to speculative activity surrounding the development of technological innovations (e.g., 1920’s and late 1990’s). The 1920’s saw the widespread introduction of an amazing range of technological innovations including radio, automobiles, aviation and the deployment of electrical power grids. The 1990’s (dot-com bubble) was the decade when Internet and e-commerce technologies emerged. At the time, many investors were able to make a lot of money at home in the stock market.


Prior to the bursting of the "dot-com bubble," (March 2000) former Fed Chairman Alan Greenspan talked about the "irrational exuberance" associated with the wide-spread purchase of internet stocks, despite exorbitant “Price-to-Earnings” (P/E) ratios (i.e., overvaluation); the P/E ratio is a measure of how expensive a stock is. For example, a P/E ratio of 20 means that investors are paying $20 for each $1 of earnings; P/E ratios of 10-25 are generally accepted rates that investors will pay for stock.


During the dot-com bubble, investors were willing to invest in internet companies that had P/E valuations of more than 30. Now, this “in and of itself” isn’t a bad thing, but becomes very risky when investors believe that the high growth in earnings will last forever; the fairy tale usually crumbles very quickly when earnings begin to level off and the speculation is replaced with the reality of business cycles. The fact is that over the long term, businesses just can not consistently sustain large double-digit “quarter-over-quarter” sales growth.


As a result of the burst, many dot-com companies ran out of capital and were either acquired or liquidated. eToys’ share price, for example, fell from the $80 reached during its IPO (May 1999) to less than $1 when it declared bankruptcy. This is just one case of many where businesses were dissolved as a result of the burst. Even the largest of the dot-com companies, such as Amazon.com and eBay, experienced huge share price reductions (approximately 65-80%) by 2001; Yahoo actually fell from a high of $128 at the peak of the bubble to $4 at the end of the bubble. And again, many investors were able to make a lot of money at home; this time they were buying put options and shorting the stock.


As a stock option enthusiast and historian, I was enthralled with the activity surrounding this dot-com bubble and burst. Although I managed not to make a significant income during this cycle, I did manage to learn some very insightful things about the stock market and myself. While looking for ways to make money at home in order to generate enough income to play again, I actually discovered a home business strategy (by fluke).

Now, I don’t consider myself a home business type of guy, as stock and option transactions have always been my passion, but I couldn’t help but spread the word on this one. This home business relies heavily on the concept of residual income earned off every sale. This means that you continue to make money long after your original sale occurred; it’s kind of similar to residuals that actors make every time their show airs throughout the world; they make money once for their work and then again each time it airs thereafter.

Also, what makes this opportunity so unique is the training and support that the company provides. The comprehensive video tutorial (located on their website) walks you through every step of the process; there are no confusing books or CDs. After your training, which takes about 5 hours to complete, you know exactly where to focus your efforts in order to make money online in the quickest way. Although this business does take some initial effort, you will make money many times over, once you are set up. This still beats all the scams out there or the Online Paid Surveys that pay you peanuts for working at home all day. Besides, again, with this business, the more work you put in, the more money you make online with the residuals.

If you go to the website below, you can join a FREE webinar LIVE online and see why the “Instant Profit Center” is such a smart and profitable decision. I guarantee that after seeing this webinar you will be shocked by the potential of this new program to make money at home. I was and have been making money at home ever since.


For more information, please feel free to visit my IPC website at http://www.ExtraIncomeExtreme.com or, if you have money to invest and want to double your money in one (1) year visit http://www.squidoo.com/options103

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