Dogs of the Dow for 2009

December 31, 2008

If you have not had the opportunity to work with the MSN Money Stock Screener, you should. It provides for a great ways to find investment ideas that could, after some research, turn up a few winners. In fact, the first component of the research process for The Disciplined Investor’s QuantaFundaTechna approach uses screens as a way to put emotions and preconceived ideas aside in order to focus on purely quantitative measures to find stocks that meet a variety of conditions.

A simple example of a screen that has been relatively successful over time is known as The Dogs of the Dow. The group of 10 stocks is now set for 2009.

Here is the list… Read more

GMAC is Giving Away Your Money

December 31, 2008

GMAC, the main source of auto loans for General Motors (GM), was recently approved as a bank holding company allowing them to access funds from the Federal government. Within days after the approval, taxpayers provided the lender with $6 billion of funds through the TARP in an effort to help stimulate auto sales. That could be helpful as during November sales were down a whopping 37%. What’s more, as record layoffs persist, vehicle sales are not seeing any chance of returning to normal levels anytime soon. Read more

Idiot Investing: Paul B. Farrell says Losing is Winning

December 31, 2008

OK, you hit a nerve. I can’t hold back any longer simply biting my tongue. I apologize in advance.

According to Paul B. Farrell, the money losing lemming of Marketwatch’s Lazy Portfolio strategy,┬áit is a good thing to do nothing with your investments as they lose and lose big…

According to his latest brilliance:

And it’s so simple and easy. No Wall Street. No active trading. No stock-picking. Just buy and hold a well-diversified portfolio of three to 11 low-cost no-load index funds, all based on the Nobel Prize-winning Modern Portfolio Theory.

If that is not the most idiotic thing that I have heard in 2008, I don’t know what is. To actually come out and publicly boast that you have a winning strategy that entails no work and proud of the fact that you helped people lose more than 1/3 to 1/2 of their portfolio values takes some Read more

S&P 500 Earnings…Is that right?

December 31, 2008

There is an interesting battle going on. On one side is the tag-team of the Fed and the Treasury. On the other is corporate America’s ability to maintain profitability in the face of this severe downturn. Sometimes they are working together with a common goal, while other times they seem at odds.

Take a read of this interesting discussion from Jon Markman’s Strategic Advantage Newsletter (Also, definitely take him up on the 2-week free trial):

Earnings in the sink

Last week, we talked about the potential for continued broad-market weakness as the hotshot analysts on Wall Street continue to slash earnings forecasts in line with deteriorating economic conditions. These new estimate cuts will sour sentiment, inflate P/E multiples and generally make life difficult for the bulls trying to bust the market higher out of the Read more

The Magical Cure for ALL of Our Investment Woes…

December 30, 2008

American Funds has recently put out a concerning report on their website. It is aimed at advisors who are looking for ways to approach their clients to help smooth over any hard feelings from the pain and harm inflicted during 2008 on buy-and-hold mutual fund portfolios.

My first question is: Where were they 6 months ago to help mitigate the apparent disaster that was coming? Too harsh? Okay, let’s give them some slack…how about 2 months ago?

Take a look at the “high-end” process being used to bring investors back into the market. Essentially, it appears that investment professionals need to be to spend some time with their clients to discuss what happened, find out what questions they may have and once that is accomplished, magically restore confidence. This expertly designed plan will some how provide the peace of mind to help sell more fund shares investors put more money to work. (I can hear them now: Get your red hot front-end load, only 5.75% charge while supplies last!) Read more

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