Special Report: Investing During an Economic Downturn

February 27, 2008

By popular demand….

Looking for the latest report : Investing During an Economic Downturn !

The latest from “The Shield of Yield” – 18 Stocks

Economic Downturn: Profiting with the 5 Pillars

February 14, 2008

Just listening to investors or analysts talk these days and it is hard to miss the ongoing chatter about an apparent and impending recession. Some analysts say we are already in one, others point to its arrival in the near future. Regardless of what the experts have predicted, no one can deny our country’s economic downturn. Looking at the pathetic housing market, the recent lackluster results in the financial markets, and the absolute horrific price of gas, it is fairly easy to assume we are well into an economic downturn, moving toward a full-blown recession.

So what do you do when it comes to investing in this turbulent time? Do you panic and pull out all your investments, toss the cash in a garbage bag and hide it under the mattress until this is all over? Some might advise such a ridiculous strategy, but the truth is that there is a benefit in being an smart investor during this time.

Investing, like any other business, is all about making good use of whatever advantage you have, and when the masses pullout, it is often a good time to think about going in.Recession Worry

Recession/bear market investing is absolutely different than traditional investment strategies for many reasons. To begin with, the average investor should probably not enter into risky investments like futures trading, option buying, or strategies that utilize leverage at a time like this. When an investment is considered a risky move in a good economy, then in a bad economy it should be considered off limits, unless of course you have a powerful grasp on the art of the advanced trading style that gives you a leg up. For most investors though, it is a good idea to stay away from such a risky endeavors, and focusing on the 5 pillars of investing during economic downturns.

The Five Pillars of Investing During Economic Downturns:
1. Understand The Business Cycle
2. Perform an Internal Audit Before Buying Anything
3. Invest in Evergreen Industries
4. Invest in Long-Term, Proven Winners
5. Look for Deep Value Stocks

The first and most important move any investor can make during an economic downturn is to educate themselves about the business cycle. All businesses, and as a whole our economy, go through a cycle. They have growth periods, followed by stagnant periods, followed by downward periods. This is something that happens to Read more

TDI Episode 43: Inside MSN Money and The Facebook Factor

February 3, 2008

Special Guest: Chris Jolley, MSN Money Senior Manager. $180 prize giveaway. MSN Money and discussion of where they are going. Andrew begins with a discussion of the Microsoft and YAHOO! deal and the real reasons for the move. Then we go in depth into the MSN Money site and what it has to offer.

Chris Jolley is a 12 year – veteran of Microsoft Corporation, having served in a number of business and marketing capacities. Currently, as the business leader for Microsoft’s Financial Products Group, Chris Jolley is responsible for defining and executing the marketing strategy for Microsoft’s consumer finance products, including MSN Money and Microsoft Money software. In this role, Jolley oversees the distribution, sales, public relations, and advertising of the products, as well as industry partnership efforts.MS Money Logo

Chris JolleyDuring Jolley’s tenure with the Financial Products Group, the MSN Money site has grown from 2 million visitors a month to over 13 million and the Microsoft Money software has evolved to include unprecedented Web integration, marking a new era in automation for online financial activities.

He has been a speaker and moderator at numerous financial conferences, including American Banker’s EBPP andZune Subscribe Account Aggregation conferences, Spring Internet World and NetFinance, and has become a recognized industry expert discussing trends and issues in the online finance space.

Jolley joined Microsoft in 1995. Prior to re-joining the financial products group, he focused on partnership marketing, distribution and fulfillment for the MSN Internet Access business, direct marketing for Microsoft’s consumer annuity programs and leading the merchandising teams for MSN Shopping and Windows Live.

Stocks Mentioned: (MSFT) (AAPL) (YHOO) (GOOG) | Get Andrew’s Book – The Disciplined Investor


Motley Caps

MSN/Motley Fool CAPS is an Acronym for? – Your Guess is as good as ours. So enter anything you think it could be… Community Aided Profit System, Communicate And Pick Stocks or maybe Come And Play Stockbroker. We looked and looked and even the Motley Fool site does not seem to have an answer.

Ends so enter now !

Check out MSN Motley Fool Caps


Friday Stock Screen: 25 Highest Yield from S&P 500

January 25, 2008

A simple list of the top 25 highest yield stocks from the S&P 500. It is a good time to look for deep value and many of the names produced by these types of screens will provide just that. Be careful not to fall into the trap of chasing yield as that is a sure-fire way of losing hard earned capital.

Look at the list as a starting point for more research.

Finally, with the markets showing great headwinds in front of it, many of the names toward the top of the list may need to be reviewed from a debt and capital standpoint. Make sure the none of these are overburdened with debt as it could become a problem for the dividend into the future.

High Yield SP 500

(ACAS) (ABK) (CZN) (HBAN) (WIN) (WB) (DDR) (RF) (FITB) (AIV) (BAC) (CMA) (NYT) (EQ) (KEY) (BBT) (LEG) (GGP) (PFE) (EQR) (AEE) (PGN) (USB) (MI) (NCC) (TEG)

Disclosure: Horowitz & Company clients may have positions in stocks mentioned in this article.

Friday Stock Screen : Great Expectations for Profits

January 18, 2008

It is Friday afternoon and the markets have not been fun to watch. It has been a long week… So, what better way to spend the day than doing some research and combing through a few stock screens. Here is one that may help to generate some ideas.

According to the MSN Money screener, “This search should appeal particularly to “value” investors, but it is biased toward smaller companies and looks across all sectors. It includes parameters such as high return on investment and low debt to equity ratio in order to set a quality bar. The result: Beaten-up stocks with a lot of potential growth ahead.”

Remember, this should be used for idea generation as the market throwing curve-balls and it is hard to trust any one strategy these days.

Criteria for Screen:

P/E Ratio: Current <= 20
Market Capitalization <= $1 billion
Debt to Equity Ratio <= 0.5
EPS Growth Next 5 Yr >= 20
Return on Equity >= 10
Price/Sales Ratio <= 2

Great Expectations Stock Screen


Learn how to create and implement stock screens for profitable results.



Horowitz & Company Clients do not hold positions in stocks mentioned.