Today's Market
by Dr Invest
Let me be clear, STAY OUT OF THE MARKET! My portfolio is largely in cash, about a third of the entire portfolio is in BOND FUND ETFs. (TIP and BND) By checking out the side-bar, you can see ideas on how to diversity your investment. I utilize a method of putting 1/3 into STOCKS, 1/3 into BONDS, and 1/3 into CASH. Because I actively manage my portfolio, I may invest more into either STOCKS or BONDS if they are returning higher profits.
The problem faced today by most investors is that STOCKS are incredibly volatile with daily swings plus or minus 200 points on the DOW. Though the DOW has slowly climbed over the past three months, world news of impending financial defaults and high unemployment continue to push us toward impending recession. Though unemployment remains high in the U.S. and our economic growth patheticaly low, our politicians keep spending like there is no tomorrow and do nothing to reduce the current debt.
Many people, and myself also, have moved into BONDS. But our government has made sure that BONDS are at an all-time low. With a glut of money flowing into BONDS, we have created a BOND BUBBLE. Our economy is so stagnant and stocks so volatile, that BONDS seem the only place to be. But when the market heats up enough to drive inflation just a bit higher, BONDS will seem worthless at their present rate. A large investment company notified their BOND clients, that they could be moving some of the BOND investment into STOCKS in the days ahead; suggesting that their BOND portfolio would no longer be a pure bond portfolio, but a mix. The BOND COMPANY already understands that if the market heats-up, they cannot remain profitable.
Of course, my suggestion is to make careful investments into stocks and bonds, placing a 6% stop-loss or trailing stop behind the initial investment. Such an investment is to only be made when there is a clear up-trend. (see the other pages in the sidebar for instructions and read through this blog)
Like most investors, I am constantly looking for investment opportunities. Some of the opportunities will result in profits, others in losses.
SECRET STOCKS
There really are "secret stocks" out there. Most are unknown or not very flashy, but consistently give the investor solid returns. Richard Shaw noted 4 stocks that outperformed the market since 2001. Here is part of his article:
How many individual stocks met or exceeded the performance of the best ETFs and mutual funds over the 10 years and 10 months from the beginning of 2001 through October 31, 2011? The answer is four -- only four.
They are:
The measure they exceeded was to have an equal or higher total return in each of the calendar year periods from 2001 forward than the median total return of all equity ETFs and no-load equity mutual funds that were in existence over the entire period.
Now you need to continue to do your own research to determine the long-term viability of these stocks, but these so called: "secret stocks" could prove to viable addtions to your stock portfolio. I am not invested in these stocks at this time and I would likely wait until I see where the market is headed by February of 2012 before investing in any of these stocks, but they are on my STOCK RADAR.
About My Stock Investment
In mid-November, I invested in three stocks, hoping to catch a Christmas Rally. I knew the stock market was dicey and stocks volatile, but the three stocks I had chosen should have been a "shew-in". What I couldn't have predicted is the effect that our politicians and Europe would have on the trend of the market. I invested into three stocks: CATM, DLTR, and FDO. CATM is an ATM company with an incredible outlook and had already returned a profit of about 28% for me, so reinvesting in a winner as it returned to an uptrend in October seemed very comfortable to me. Dollar Tree and Family Dollar are both "dollar stores", with Dollar Tree out-performing the analysts estimates again and again. Dollar Tree and Family Dollar have had offers for buy-outs. Dollar Tree is wanted by Walmart, but Dollar Tree has resisted all offers for a buy-out. Dollar Tree also returns a lot of cash because it is not heavily leveraged. There are no reasons for these three stocks to not return 6 to 8% by the end of the year.
Since repetition is the price for learning, you have heard me say: The market doesn't care what anyone thinks the price of a stock should be, it is the market that determines the price of a stock. So THE MARKET IS ALWAYS RIGHT, regardless of anyone elses opinion.
Knowing that my investments were covered by a 6% trailing-stop, I have worried little about them. I do watch these three stocks and as of last Friday, all three of them neared the 6% trailing-stop. FDO had been slowly declining in price since I bought it and as the market slid downward last week, I was certain that FDO would sell. Remarkably, FDO gained in price as the overall market moved downward. Remember, the market is always right.
I was glad that I had RULES. Rule one, determine how much money you are willing to loose. I had determined 6% was as much as I could loose, but was hoping for a 6% gain. Rule two, place a stop-sell or trailing-stop on your investment. This limits your loss to the 6% should the stock turn downward. Rule three, be patient. It takes time for a stock to grow.
So, today, I am just thankful that I am less in the RED than I was last week.
I will keep you informed about my progress in these stock investments. A week of good news could well pull me back into black.
(note: the above article is soley for entertainment purposes and not to be used in any way as investment advice.)
by Dr Invest
Let me be clear, STAY OUT OF THE MARKET! My portfolio is largely in cash, about a third of the entire portfolio is in BOND FUND ETFs. (TIP and BND) By checking out the side-bar, you can see ideas on how to diversity your investment. I utilize a method of putting 1/3 into STOCKS, 1/3 into BONDS, and 1/3 into CASH. Because I actively manage my portfolio, I may invest more into either STOCKS or BONDS if they are returning higher profits.
The problem faced today by most investors is that STOCKS are incredibly volatile with daily swings plus or minus 200 points on the DOW. Though the DOW has slowly climbed over the past three months, world news of impending financial defaults and high unemployment continue to push us toward impending recession. Though unemployment remains high in the U.S. and our economic growth patheticaly low, our politicians keep spending like there is no tomorrow and do nothing to reduce the current debt.
Many people, and myself also, have moved into BONDS. But our government has made sure that BONDS are at an all-time low. With a glut of money flowing into BONDS, we have created a BOND BUBBLE. Our economy is so stagnant and stocks so volatile, that BONDS seem the only place to be. But when the market heats up enough to drive inflation just a bit higher, BONDS will seem worthless at their present rate. A large investment company notified their BOND clients, that they could be moving some of the BOND investment into STOCKS in the days ahead; suggesting that their BOND portfolio would no longer be a pure bond portfolio, but a mix. The BOND COMPANY already understands that if the market heats-up, they cannot remain profitable.
Of course, my suggestion is to make careful investments into stocks and bonds, placing a 6% stop-loss or trailing stop behind the initial investment. Such an investment is to only be made when there is a clear up-trend. (see the other pages in the sidebar for instructions and read through this blog)
Like most investors, I am constantly looking for investment opportunities. Some of the opportunities will result in profits, others in losses.
SECRET STOCKS
There really are "secret stocks" out there. Most are unknown or not very flashy, but consistently give the investor solid returns. Richard Shaw noted 4 stocks that outperformed the market since 2001. Here is part of his article:
How many individual stocks met or exceeded the performance of the best ETFs and mutual funds over the 10 years and 10 months from the beginning of 2001 through October 31, 2011? The answer is four -- only four.
They are:
- Healthcare Services Group (HCSG)
- Plains All American Pipelines (PAA)
- Ventas (VTR)
- Magellan Midstream (MMP)
The measure they exceeded was to have an equal or higher total return in each of the calendar year periods from 2001 forward than the median total return of all equity ETFs and no-load equity mutual funds that were in existence over the entire period.
Now you need to continue to do your own research to determine the long-term viability of these stocks, but these so called: "secret stocks" could prove to viable addtions to your stock portfolio. I am not invested in these stocks at this time and I would likely wait until I see where the market is headed by February of 2012 before investing in any of these stocks, but they are on my STOCK RADAR.
About My Stock Investment
In mid-November, I invested in three stocks, hoping to catch a Christmas Rally. I knew the stock market was dicey and stocks volatile, but the three stocks I had chosen should have been a "shew-in". What I couldn't have predicted is the effect that our politicians and Europe would have on the trend of the market. I invested into three stocks: CATM, DLTR, and FDO. CATM is an ATM company with an incredible outlook and had already returned a profit of about 28% for me, so reinvesting in a winner as it returned to an uptrend in October seemed very comfortable to me. Dollar Tree and Family Dollar are both "dollar stores", with Dollar Tree out-performing the analysts estimates again and again. Dollar Tree and Family Dollar have had offers for buy-outs. Dollar Tree is wanted by Walmart, but Dollar Tree has resisted all offers for a buy-out. Dollar Tree also returns a lot of cash because it is not heavily leveraged. There are no reasons for these three stocks to not return 6 to 8% by the end of the year.
Since repetition is the price for learning, you have heard me say: The market doesn't care what anyone thinks the price of a stock should be, it is the market that determines the price of a stock. So THE MARKET IS ALWAYS RIGHT, regardless of anyone elses opinion.
Knowing that my investments were covered by a 6% trailing-stop, I have worried little about them. I do watch these three stocks and as of last Friday, all three of them neared the 6% trailing-stop. FDO had been slowly declining in price since I bought it and as the market slid downward last week, I was certain that FDO would sell. Remarkably, FDO gained in price as the overall market moved downward. Remember, the market is always right.
I was glad that I had RULES. Rule one, determine how much money you are willing to loose. I had determined 6% was as much as I could loose, but was hoping for a 6% gain. Rule two, place a stop-sell or trailing-stop on your investment. This limits your loss to the 6% should the stock turn downward. Rule three, be patient. It takes time for a stock to grow.
So, today, I am just thankful that I am less in the RED than I was last week.
BUY TODAY
FDO (Family Dollar) $58.8193 loss 4.12%
DLTR (Dollar Tree) $79.20 loss 2.75%
CATM (Cardtronics ATMs) $24.81 loss .32%
How do you say, "I'm thrilled with my losses?" But considering that the entire losses on CATM was nearly erased and that the dollar stores gained over 1% today, I am enthusiastic. What is really needed is a week of the same kind of advancement in the stock market. Now that would make me estatic. FDO (Family Dollar) $58.8193 loss 4.12%
DLTR (Dollar Tree) $79.20 loss 2.75%
CATM (Cardtronics ATMs) $24.81 loss .32%
I will keep you informed about my progress in these stock investments. A week of good news could well pull me back into black.
(note: the above article is soley for entertainment purposes and not to be used in any way as investment advice.)
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