SubscribeStrategy Lab: MEATHEAD! - Archie Bunker Portfolio
December 24, 2008
ARCHIE Bunker Proof Your Portfolio – A How-To primer on portfolio protection
(Read to the tune of All in the Family theme song…)
Is it time for canned goods, water collection and preparing the bunker for the next leg of a financial meltdown? Perhaps, but smart investors know that whatever mar
ket conditions persist, opportunities to profit will present themselves as long as a few important rules are followed. In times like this, some may be thinking about building a bunker and living underground for a while. So with that in mind, consider the ARCHIE Bunker acronym to help guide you through markets that exhibit heavy negative sentiment (Negative since this is how Archie Bunker viewed the world)
A Fool and Their Money…..
Let’s agree on this: The warning signs are everywhere. While everyone is now claiming to have been one of the few who saw all of this mess coming, few were able to implement. Whether you choose to ignore them is your choice. But remember, while these days the opportunity to profit is Read more
Strategy Lab: Tough to Hit a Volatile Market (up 14%)
December 19, 2008
If you have been following our progress, you will know that, over the past few weeks, there have been many positions that we added and subsequently exited as our plan for buying and selling amid the volatility has worked out well. Of the dozen or so positions that initially had been discussed, all but four have been executed.
If you recall, I had made the suggestion that it appeared that a capitulation point had been hit on the afternoon of Nov. 20. Since, the Dow Jones Industrial Average ($INDU) has added almost 1,400 points (18%) and the S&P 500 Index ($INX) 160 (20%). The next day, I added several infrastructure stocks to the portfolio that could benefit from an economic stimulus plan to rebuild America. Read more
3 Reasons to Stay in this Market ???
December 8, 2008
It is as good as any headline looking to catch the attention of anyone who is grasping for reasons to stick to a plan that caused major financial (and psychological) pain over the past 12-months. The concept of Buy-and-Hold, the brainchild of Warren Buffett, has been bastardized by the asset gatherers who believe that it really means: buy-and-hold-no-matter-how-much-money-you-lose. (Also see Don’t buy and hold a bad Strategy)
When is it the right time to sell anyway? 10% down? 20%, 30%, 40%, or 50% ? While Warren Buffett has amassed a fortune by sticking to what he knows and believes in, he has also lost an amazing amount of money over the past 12-months. Of course I will not start to second guess his success, but should he be blindly followed by Joe Investor?
Strategy Lab: Don’t Buy and Hold a Bad Strategy
December 3, 2008
For many people, this has been one of the most difficult times of their lives. Both in the U.S. and abroad, people are living under a cloud of uncertainty about their future financial position. I know this because I have been inundated with e-mail from people asking for help.
People are hurting.
Two recent e-mails read in part:
“My sister suggested I contact you. My investment account has lost an incredible amount of money and my ‘advisor’ is clueless what to do. I am down $385k from over $600k. Please contact me so that I can provide you with the information so you can review.”
“My husband and I are currently living in Eastern Europe. I am not a U.S. citizen, but he is. He had significant investments and savings in the U.S., but they have lost a lot of value recently. We need the help of a financial advisor/planner to make sure we do not lose our savings for our kids, retirement, etc.”
These are not the exception, by any means. In fact, for the past year, my team and I have been working to change the mindset of investors who have been indoctrinated into the buy-and-hold club. You know, the one that tries to prove that all other investment strategies are worthless and are likely to lose massive amounts of money.
Strategy Lab: Up 16% helped by “Edge” Strategy
November 26, 2008
My MSN Strategy Lab portfolio in now up by 16.5% since August 1st. There has been a need to work the edges as the market has been throwing curve balls, sliders and end of day fastballs. Here is my latest journal:
It is really difficult to digest the amount of money that has been thrown at the economy. Some are estimating that over $7.5 trillion has already been spent on what appears to be unapproved monies. Have you wondered how the Fed keeps on getting more money to spend almost daily?
See a virtual tour of The TDI Managed Growth Strategy (How we invest “real” money)
What is more concerning is the lack of any real due diligence being conducted by government agencies. It is impossible to imagine that an effective level of research has been done to provide the necessary information to make a good decision. They still continue to implement stimulus and the impact Read more
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