{"id":59601,"date":"2014-09-01T02:58:43","date_gmt":"2014-09-01T06:58:43","guid":{"rendered":"http:\/\/countingpips.com\/?p=59601"},"modified":"2014-09-01T02:58:43","modified_gmt":"2014-09-01T06:58:43","slug":"how-to-compound-your-stocks-for-a-retirement-fortune","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/09\/how-to-compound-your-stocks-for-a-retirement-fortune\/","title":{"rendered":"How to Compound Your Stocks for a Retirement Fortune"},"content":{"rendered":"
September 1, 2014<\/div>
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By MoneyMorning.com.au<\/u><\/a><\/p>\n

After all the excitement earlier in the month as stocks<\/strong> fell, August turned out to be about as dull as you can get.<\/p>\n

The S&P\/ASX 200 index gained a paltry 0.05% from 31st July to 29th August.<\/p>\n

But as always, looking at stock returns from an index perspective can give you a distorted view.<\/p>\n

That’s especially important in a market like this, with stocks <\/a> seemingly going nowhere.<\/p>\n

Of course, the reality is that there is plenty of stock movement. You only have to look at last Friday’s market to see that…<\/p>

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Many folks will say that volatile markets are dangerous for investors.<\/p>\n

That may be true.<\/p>\n

But we’ll argue that go-nowhere markets are just as dangerous.<\/p>\n

Perhaps not for the reason you think. It’s not because the market’s failure to rise means that investors won’t make money. Rather, it’s because a go-nowhere market will often make an investor think that stocks aren’t moving.<\/p>\n

That’s when investors can lose confidence and abandon the market.<\/p>\n

And that’s why a go-nowhere market is bad news for investors.<\/p>\n<\/p>\n

Aussie market flat, but these stocks have taken off<\/h2>\n<\/p>\n

We keep an eye on 31 listed ASX stocks on a ‘blue-chip’ watch list.<\/p>\n

The list contains all the blue-chip stocks<\/a> you’d expect to see (such as the big miners and big banks). But it also has a bunch of other blue-chip stocks.<\/p>\n

Remember, last month the main Aussie index gained 0.05%.<\/p>\n

Last Friday’s trading day actually contributed more than half of the month’s gain. The index gained 0.03% on Friday.<\/p>\n

What a boring day.<\/p>\n

What a boring month.<\/p>\n

Well, that’s the impression you would have if you owned a fully diversified portfolio of stocks that tracked the index. Yawn.<\/p>\n

But what if you owned a bunch of individual stocks?<\/p>\n

Take these three stocks from our watch list, and how they performed last Friday:<\/p>\n