SubscribeStrategy Lab: Make Wild Market Moves Your Friends
January 9, 2009
2009 is here! Now what?
Though volatility has dropped from the peak in November, the daily ups and downs have still often been much bigger than normal. Assuming that there ever was actually a “normal.”
And the final hour of many trading days have shown remarkable swings that have been responsible for most of each day’s move. It seems as if the market is similar to a basketball game: Who needs to watch the whole game when it is decided in the final minutes?
This market action scares away many investors who may not have time to watch the daily ups and downs. But it can be a good opportunity if you find the right strategy. Whether you find a great stock or one that is simply flying from top to bottom on a daily basis, you need a way to manage the risk and form a plan for profit. Read more
Strategy 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.
Links
