Tag Archives: stocks

The Need for Discipline in the Stock Market

Guest Article By Dr. Winton M. Felt

Good trading rules are important. However, even those who concoct great rules tend not to follow them. Most people lack the consistency necessary to stick to those rules even when things are going badly.

Make the decision. Will you be consistent in following your rules or not? Most people who invest or trade never make the decision. It is almost impossible to be a consistent winner in the stock market without the consistent application of good decision rules. Think about how the market reacts to news events. A new jobs report is released by the government that shows more people are jobless. Immediately, the market plunges. The debt of a foreign country is downgraded and panic hits the market. Stocks plunge in many sectors. What is going on here? Just as an EKG can tell a cardiologist some things about a person’s heart function, so we can consider the market to be connected to the nervous system of millions of investors.

There is a stimulus and a response. Depending on the nature of the stimulus, the response is reasonably predictable. The market reflects emotional states of the population. In order to profit in the stock market, it is necessary to avoid thinking like the rest of the population. When the population pushes the market down in a fit of panic selling, the negative attitude about owning stocks is at a peak. However, that is precisely the time when people should be most positive about owning stocks. The individual investor tends to feel the same way the population as a whole feels. To follow a set of rules with consistency, therefore, is difficult. It often forces a person to act contrary to his emotions.

Assume, for example, that you have just bought a stock with a fantastic story. Blixis Company (BLIX) has just discovered a permanent cure for the common cold and has patent rights to the serum. The stock is at $10 a share and you note that it has been closely following a rising trendline. You buy it for $10 when it is right on the trendline. You believe this stock is likely to go to at least $100 and that it will probably split several times before it stops climbing. After a week, the stock is at $15 and it is still moving along the trendline. One day you happen to be looking at the chart of this stock and you notice that it has fallen below the trendline. It is selling at $15 but the trendline is at 15.46. What do you do? Do you say to yourself that this is only a temporary bout of profit taking and decide to continue holding? Two days later the trendline is at $17 and the stock is still at $15. Do you tell yourself that “stocks fluctuate and you must give them room to do so” or do you sell? At $15, the stock is 11.76% below the trendline.

Most investors in this situation would keep holding. However, if you are still holding, then you must face the fact that you probably do not have a strategy at all. You have bought a “story stock” and you are psychologically locked into it because you believe in its story. A strategy consisting of a set of decision rules enables a person to draw a line in the sand and say “this is where I pull the plug.” The probability of a person coming out ahead in the scenario described above, without his adhering to the dictates of a good set of decision rules, is not great. What if the FDA insists on additional data before clearing the drug? The stock would then plummet. It could take a year or more to acquire sufficient data to satisfy the FDA. What if while you are waiting another company comes up with a cure that is based on a slightly different process that will enable the company to manufacture its drug more cheaply than Blixis Company can manufacture its drug? If that were to happen, BLIX would probably plunge and you would still be holding the stock.

A consistent rule-following strategic investor times his purchase so he can buy when risk of further decline is minimal. He never becomes married to a stock. Finally, he always has an exit strategy, because unexpected bad things happen. In fact, these are the broad principles followed by stockdisciplines trader/investors. Beyond these general concepts, an investor/trader should have specific well-defined rules for buying and selling. For every buyer, there is a seller. One is more likely to make money on a transaction, and the other is more likely to lose money on the same transaction. Without strictly adhering to a sound strategy, guess which one you are most likely to be.

Copyright 2018, by Stock Disciplines, LLC. a.k.a. StockDisciplines.com

Dr. Felt has market reviews, stock alerts, and free tutorials at https://www.stockdisciplines.com Information and tools for computing stop losses are also at https://www.stockdisciplines.com

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Smart Ways to Invest: A Quick Overview of Some of the Smartest Things You Can Do With Money

Guest Article By George Botwin

Do you suddenly find yourself with a bit of money and want to know about some smart ways to invest? How can you best put that money to good use? The most important thing to do – if you haven’t already done so – is to pay off your debts. Get that out of the way. If you still have debts when you invest, any interest you might earn from the investment will just equal out the interest you’ll have to pay on the debts. Holding onto debt might even be more costly than any profit you might make from investments.

Once you’re all clear with debts, then you can consider making smart investments. Investment bonds are usually considered a good idea for those who are afraid of taking on too much risk. The potential for returns is quite lower than those of stocks, but you will still get some interest over time, whether you invest in US government bonds or foreign bonds. Just do the right research first to find out which foreign bonds are likely to be the most profitable over the next decade.

Learn about the different types of mutual funds and decide if they are smart ways to invest for you. They are categorized by asset class: cash, bonds, and stocks, and then further categorized by objective, strategy, or style, such as stock mutual funds, money market mutual funds, and so forth. The downside to mutual funds is lack of ownership. The investor actually doesn’t own the individual stock, and therefore lacks perks such as voting rights.

Smart Ways to Invest With Diversification

While you don’t have to put all of your money in a single bank account, it’s still considered wise by many people to open up a Certificate of Deposit account with a reputable online bank that offers a high APY – even higher than a regular savings account. The drawback? You have to agree to let your money stay in the bank for a certain period of time and won’t be allowed to withdraw any of it prior to that time without getting penalized.

Dividend-paying stocks can be among the smart ways to invest for intermediate and advanced investors. Dividends are a portion of a company’s profit that are paid out to shareholders (usually quarterly). If you own a dividend stock, you can earn cash in the short term as well as the investment itself through market appreciate during the long-term.

As for the smart ways to invest in individual stocks and a few other opportunities, it’s best to join a group of insiders where you will get picks from the true professionals and experts. Having access to high-quality investment analysis, such as that offered by Capitalist Exploits, is a great way to gain an edge in investing.

To get closer to financial freedom, visit George’s website: https://www.financiallygenius.com/capitalist-exploits/

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Using the Best Stock Indicators for Your Trades and Investments

Guest Article By Joanne Cooper

Market volatility and insecure trades and investments are a continuing highlight. As many traders and investors learned this year, when bullish markets and record highs are trending, it may lead to an instant pullback. If you don’t want to get caught by surprise with the downtrends, then it is important to use the best stock indicators. This will help you to reduce your risk while allowing your portfolio to benefit from analytical additions.

The market will always move up and then down, causing many to lose money or to gain profitability. The difference in the trades and investments is not how the market is moving; it is how one approaches their portfolio. A winning game, based on the ability to strategically position your moves in the market, easily helps you to build the proper reputation for trades and investments. The best stock indicators can assist you with the positioning you need.

Analytical tools are the first forms of indicators that you need. These look at the patterns and trends in the market. They identify the data, including price, volume and time that it takes for a market to turn. It also looks at the quantitative information over a certain time. You will be able to define the data and how it is moving as well as how each day relates to the next, forming patterns that predict when a change will happen. You want to look at how each is functioning independently in the market. It is also important to define how each correlates with others, specifically to identify how other stocks are impacting your trades and investments.

The best stock indicators also offer predictive data. These are offered so you can strategically move in the market. The predictions include an analysis of the data as well as the expectations of how the market will move. While most focus on real – time statistics, newer technologies define the probability of turn in the market before it happens. These offer a different approach to the stocks you are investing in, allowing you to find strategic positions, no matter which way the market is turning.

Protecting your profitability is important for every trader and investor. Using the best stock indicators helps you to identify moves in the market and to find a strategic position based on the analytics that you use. By adding together different trends, patterns and data, you will easily be able to find the best way to move in the market.

Using the best stock indicators reduces market volatility. BluSignals provides forward thinking tools that are able to predict changes in the market before they happen. Determining trends and buy / sell signals guides trades and investments to strategic positioning.

Article Source: https://EzineArticles.com/expert/Joanne_Cooper/2456865

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Harnessing Stock Market Volatility

Guest Article By Steve Selengut

If you were to Google “stock market volatility”, you would find a wide range of observations, conversations, reports, analyses, recipes, critiques, predictions, alarms, and causal confusion. Books have been written; indices and measuring tools have been created; rationales and conclusions have been proffered. Yet, the volatility remains.

Statisticians, economists, regulators, politicians, and Wall Street gurus have addressed the volatility issue in one manner or another. In fact, each day’s gyrations are explained, reported upon, recorded for later expert analysis, and head scratched about.

The only question I continue to have about all this comical hubbub is why don’t y’all just relax and enjoy it? If you own only high quality income generating securities, diversify properly, and adopt a disciplined profit-taking routine, you can make stock market volatility your very best friend (VBF).

Decades ago, a nameless statistics professor brought me out of a semi-comatose state with an observation about statisticians, politicians, and economists. “In the real world”, he said, “there are liars, damn liars, and any member of the groups just mentioned”. An economist or a politician, armed with a battery of statistics, is an ominous force indeed.

Well, now, all economists and statisticians have high powered computers and the ability to analyze volatility with the same degree of certainty (or is it arrogance) that they have developed with regard to individual-stock risk analysis, economic and geographical sector correlation dynamics, and future prediction in general.

  • But the volatility (and the uncertainty it either causes or results from, depending upon the expert you listen to) persists.

Modern computers are so powerful, in fact, that economists and statisticians can now calculate the investment prospects of just about anything. So rich in statistics are these masters of probabilities, alphas, betas, correlation coefficients, and standard deviations, that the financial world itself has become, mundane, boring, and easy to deal with. Yeah, sure it has.

Since they can predict the future with such a high degree of probability, and hedge against any uncertainty with yet another high degree of probability, why then is the financial world in such a chronic state of upheaval? And why-o-why does the volatility, and the uncertainty, continue?

I expect that you are expecting an opinion (yet another opinion) on why the volatility is as pronounced as it seems to be compared with years past. Frankly, Scarlett, I can’t really make myself give a damn. The uncertainty that we are asked to believe is caused by volatility just simply is not. Uncertainty is the regulation playing field of the investment game… and of life, actually.

The more you invest in higher risk securities, the more you speculate on future directional change, the more you ignore growing income, and focus only on market value, the more uncertain your investment environment becomes. So risk, speculation, poor diversification, low income generation, and up only market value expectations combine to exacerbate uncertainty, but nothing can eliminate it… only that is certain.

Volatility, on the other hand is simply a force of nature, one that needs to be embraced and dealt with constructively if one is to succeed as an investor.

But this machine driven, hyper-volatility that we have been experiencing recently, has been magnified by the darkest forces of the “dismal science” and the changes that it has encouraged in the way financial professionals view the makeup of the modern investment portfolio.

On the bright side, enhanced market volatility actually enhances the power of the equity and income security trading disciplines and strategies within the Market Cycle Investment Management ( MCIM ) methodology… an approach to market reality that embraces market turbulence, and harnesses market volatility for results that leave most professionals either speechless or in denial.

  • MCIM focuses on the highest quality equity securities and well diversified income security portfolios, creating a lower than normal risk environment where price fluctuations can be dealt with productively, without panic. Higher prices generate profit taking transactions; lower prices invite additional investment. The underlying quality, diversification, and income generation create a more tolerable “uncertainty quotient” than other methodologies.

But, with no statistical data necessary (or available) to support the following opinion, consider this simplistic rationale for the hyper-volatility of today’s stock market.

Volatility is a function of supply and demand for the common stock of a finite number of dirty, evil, greedy, polluting, congress corrupting, job creating, product and service providing, innovation and wealth developing, foundation supporting, gift giving, tax-collecting corporations.

Those of us who trade common stocks in general, Investment Grade Value Stocks in particular, owe a debt of gratitude to the real volatility creators: the hundreds of thousands of derivative products that bring an entirely speculative kind of indirect supply and demand to the securities markets.

Generally speaking, the fundamental, emotional, political, economic, global, environmental, and psychological forces that impact stock market prices have not changed significantly, if at all.

Short term market movements are just as unpredictable as they have ever been. They continue to cause the uncertainty you need to deal with, by using proven risk minimization techniques like asset allocation, diversification, and profit taking.

The key change agents, the new kids on the block, are the derivative betting mechanisms (Index ETFs, for example) and their impact on the finite number of shares available for trading. Every day on the stock exchange, thousands of equities are traded, a billion shares change hands. The average share is “held” for mere minutes. No one seems to we seek out analysts who spin tales of “fundamental” brilliance, profitability, or income production.

On top of derivative trading in real things such as sectors, countries, companies, commodities, and industries, we have a myriad of index betting devices, short-long parlor games, option strategies, etc. What’s a simple common share of Exxon to do? I’ve heard financial talk show hosts warn listeners to never, not ever, buy an individual equity!

  • Is today’s movement in any individual equity the result of demand for the company shares themselves, or demand for the multiple funds, indices, and other derivatives that track or include the company in their “model”? How many derivative owners have a clue what’s inside their ETF?

We are in an environment where investors feel smarter dealing in sectors than in companies; where 401k “retirement” plans (they really are not retirement plans, you know) are banned by regulators from offering even reasonably high yielding investment opportunities, and where government fiscal policies have forced millions of actual retirement savings accounts to seek refuge in the shark infested waters around Wall Street.

Market volatility is here to stay, at least until multi-level and multi-directional derivatives are relocated to the Las Vegas casinos where they belong, until regulators realize that 7% after higher expenses is better than 2% after minimal expenses, and until interest rates are allowed to return to somewhat normal levels… and this is what feels to some like an elevated level of uncertainty.

For the discernible future, we’ll need to find a way, a methodology, that makes both of them our VBFs.

My articles always describe aspects of an investment process I have been using since the 1970’s, as described in my book, “The Brainwashing of the American Investor”. All the disciplines, concepts, and processes described therein work together to produce (in my experience) a safer, more income productive, investment experience. No implementation should be undertaken without a complete understanding of all aspects of the process.

Article Source: https://EzineArticles.com/expert/Steve_Selengut/12786

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Compounding Is The Best And Least Time Consuming Strategy

Guest Article By Gregory Neil Smyth

Time in a Compounding strategy is your biggest friend. The longer your investment is allowed to Compound, the bigger your Account becomes.

If you have a ‘super’ busy life, and have a lump sum to invest, after making the initial investment there is nothing more to do. Get on with your life and watch your dividend reinvestment strategy build up.

Compounding involves adding to your original capital invested every year, and then that new balance to be added to in the next year, and so on. Buy solid dividend paying companies, like the Dividend Aristocrats, and you are assured of the best Compounding strategy available.

Not only do Dividend Aristocrats pay dividends every year, their dividend history through all sorts of market upheavals, their dividends also Rise every year. This means a Growing dividend Yield for the Compounding strategy, and when coupled with dividend reinvestment, you have 2 strategies in one!

Most pay Rising dividends 4 times a year, so no matter the current state of the market, reinvestment is taken care of by these companies for you. No temptation to sell in a big drop, just let the reinvestment strategy take care of itself, and LET IT COMPOUND.

Your Time is your own, after the original investment is made, just ‘put it in the bottom drawer’ and watch it Compound for as long as you like.

In the last big ‘drop’ in the market (2008-2009), 10 Dividend Aristocrat stocks were delisted from the Dividend Aristocrat Index because of changes to their dividend policy(they cut their dividend), so make sure to only invest in the ‘biggest and best’. The longer they have paid rising dividends and stayed in the Index the better.

Companies like McDonald’s, Johnson & Johnson, 3M, Wal Mart, who have paid rising dividends for decades, through all sorts of economic shock/upheavals, are the ones to invest in.

If you are investing through a savings plan, you are probably adding to your investment once a year, so again your Time is yours.

Even if you have 10-20 years to go till retirement, don’t ‘put off’ this strategy, as Compounding is the best ‘hands off’ strategy there is. Even if only your bills in retirement are taken care of, that is a huge bonus, the alternative is not pretty.

The best holding period for this strategy is ‘forever’, but when you eventually need the money, there is no need to sell, just change the reinvestment part to cash dividends, and everything ‘is sweet’. No capital gains tax, as no shares have been sold, you are receiving a ‘GROWING’ income stream for ever!

Time is your FRIEND in a Compounding investment strategy, so start NOW.

For a website dedicated to creating wealth by compounding, and creating long term wealth, go to [http://www.wealthbycompounding.com] This article has been written by Gregory Neil Smyth, who has just released an eBook ‘How To Create Wealth By Compounding’ and is available for purchase at the above website.

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Searching For A Healthcare ETF

As I reviewed my investment portfolio I noticed that I am still missing an ETF for the healthcare sector. Personally, I’ve been leaning toward the Vanguard Health Care Index Fund ETF ($VHT). But I was interested to see what else was being offered so I did a bit more research.
I searched out for healthcare ETFs with these different Fund Families:

  • Fidelity
  • Invesco
  • iShares
  • Vanguard

The search resulted in about 11 different funds for review. I narrowed it down to 9 funds because Invesco S&P SmallCap Health Care ETF ($PSCH) and Invesco DWA Healthcare Momentum ETF ($PTH) does pay out dividends. Dividends are a key focus of mine so these 2 funds are automatically out. So now I look at the other funds and review the factors that I use for selecting ETFs that I’m interested in investing in. I look at dividend payout, dividend yield, and stock price. Based on those criteria, I eliminated the following funds:

$FHLC – this was the only healthcare fund being offered by Fidelity. Even though the price is very economical at $56/share, the dividend is too low to be worth the investment ($0.70/share) even though the dividend yield is around 1.23%. To be honest most of the fund in this list are paying out pretty close to this yield amount. Even if the stock price dropped close to its 52 week low range of $35, the yield would still be under 2%.

Then there’s $IEIH, an iShares fund that is trading at around $32/share. But it’s also paying out a low dividend of $0.40 for a yield of 1.22%. Even if the share price dropped to its 52 week low of $22.07/share the yield would still be under 2%.

Now we come to $IHF. This fund is trading at the high end of its 52 week range at about $228/share. Even if the price dropped to its 52 week low of $134.50, the current yield of 0.73% would not get that much better. It would only increase to 1.24%. Way below my criteria of 3% minimum.

That leaves us with the Invesco funds of $PBE, $PJP, and $RYH. I’m not going to detail these individually because they are all low dividend yield funds that pay out pennies per share. Their yields range from 0.04% to 0.82%. They’re all trading at the high end of their 52 week range so the yields will not be getting any better.

So, out of the 9 funds that were left, I eliminated 6 of them based on my criteria. Now I need to decide between:

$IHE – iShares U.S. Pharmaceutical ETF

$IYH – iShares U.S. Healthcare ETF

$VHT – Vanguard Health Care ETF

$IHE is the least expensive of the 3 funds. It’s trading at the high end of its 52 week range at about $176/share with a dividend payout of about $2.14 (for a yield of 1.22%). At its low end range it would still only have a yield of 1.86%. The expense ratio for this fund is 0.42%. Morningstar rates this fund as average risk with below average returns.

Next we have $IYH that is also trading at its 52 week high range of $242/share while its dividend payout is $2.86 for a yield of 1.19%. The yield would be similar to $IHE if the shares traded at the low end of the 52 week range. Expense ratio of 0.43% with a Morningstar rating of a below average risk and average return.

Lastly, we have $VHT. This fund is also trading at its high end of its 52 week range at about $220/share. The dividend payout is $2.55 (for a yield of 1.16%). Again, if the price dropped to the low end of the 52 week range the yield would be 1.86%, also, like the others. However, the key difference is the expense ratio, While the other funds have their expense ratio north of 0.40%, this fund has an expense ratio of only 0.10%. And the Morningstar rating is below average risk and average return. Similar to $IYH.

I have outlined how I go about reviewing and deciding which ETF to invest in. This may not work for you because you may have a different set of criteria or you may be looking at a different set of data. That’s fine because you are the one that has to decide the best way to invest in your money. I’m not a financial professional and nothing in this post is to be taken as investment advice. If you are unsure of what you need to do or how, seek the advice of a professional.

Even though I tend to lean toward Vanguard ETFs, I did a search of other fund families in order to make sure that I wasn’t locked into my bias toward them. I will probably purchase $VHT when the funds are available and thus will have a position in the healthcare sector. $VHT because of its lower expense ratio. If I had to select a second choice it would probably be $IHE because, even though the expense ratio is 0.40+, it is very slightly lower than the other iShare funds.

But do you own due diligence and make sure that you are the one that is formulating and controlling your investment strategy.

Income Investing Fantasyland: High Dividend Equity ETFs and Mutual Funds

Guest Article By Steve Selengut 

Several years ago, while fielding questions at an AAII (American Association of Individual Investors) meeting in Northeast NJ, a comparison was made between a professionally directed “Market Cycle Investment Management” (MCIM) portfolio and any of several “High Dividend Select” equity ETFs.

  • My response was: what’s better for retirement readiness, 8% in-your-pocket income or 3%? Today’s’ response would be 7.85% or 1.85%… and, of course, there is not one molecule of similarity between MCIM portfolios and either ETFs or Mutual Funds.

I just took a (closer-than-I-normally-would-bother-to) “Google” at four of the “best” high dividend ETFs and a, similarly described, group of high dividend Mutual Funds. The ETFs are “marked-to” an index such as the “Dividend Achievers Select Index”, and are comprised of mostly large capitalization US companies with a history of regular dividend increases.

The Mutual Fund managers are tasked with maintaining a high dividend investment vehicle, and are expected to trade as market conditions warrant; the ETF owns every security in its underlying index, all of the time, regardless of market conditions.

According to their own published numbers:

  • The four “2018’s best” high dividend ETFs have an average dividend yield (i.e., in your checkbook spending money) of… pause to catch your breath, 1.75%. Check out: DGRW, DGRO, RDVY, and VIG.
  • Equally income unspectacular, the “best” Mutual Funds, even after slightly higher management fees, produce a whopping 2.0%. Take a look at these: LBSAX, FDGFX, VHDYX, and FSDIX.

Now really, how could anyone hope to live on this level of income production with less than a five or so million dollar portfolio. It just can’t be done without selling securities, and unless the ETFs and funds go up in market value every month, dipping into principal just has to happen on a regular basis. What if there is a prolonged market down turn?

The funds described may be best in a “total return” sense, but not from the income they produce, and I’ve yet to determine how either total return, or market value for that matter, can be used to pay your bills… without selling the securities.

Much as I love high quality dividend producing equities ( Investment Grade Value Stocks are all dividend payers), they are just not the answer for retirement income “readiness”. There is a better, income focused, alternative to these equity income production “dogs”; and with significantly less financial risk.

  • Note that “financial” risk (the chance that the issuing company will default on its payments) is much different from “market” risk (the chance that market value may move below the purchase price).

For an apples-to-apples comparison, I selected four equity focused Closed End Funds (CEFs) from a much larger universe that I have been watching fairly closely since the 1980s. They (BME, USA, RVT, and CSQ) have an average yield of 7.85%, and a payment history stretching back an average 23 years. There are dozens of others that produce more income than any of the ETFs or Mutual Funds mentioned in the “best of class” Google results.

Although I am a firm believer in investing only in dividend paying equities, high dividend stocks are still “growth purpose” investments and they just can’t be expected to generate the kind of income that can be relied upon from their “income purpose” cousins. But equity based CEFs come very close.

  • When you combine these equity income monsters with similarly managed income purpose CEFs, you have a portfolio that can bring you to “retirement income readiness”… and this is about two thirds the content of a managed MCIM portfolio.

When it comes to income production, bonds, preferred stocks, notes, loans, mortgages, income real estate, etc. are naturally safer and higher yielding than stocks… as intended by the investment gods, if not by the “Wizards of Wall Street”. They’ve been telling you for nearly ten years now that yields around two or three percent are the best they have to offer.

They’re lying through their teeth.

Here’s an example, as reported in a recent Forbes Magazine article by Michael Foster entitled “14 Funds that Crush Vanguard and Yield up to 11.9%”

The article compares both yield and total return, pointing out pretty clearly that total return is meaningless when the competition is generating 5 or 6 times more annual income. Foster compares seven Vanguard mutual funds with 14 Closed End Funds… and the underdogs win in every category: Total Stock Market, Small-Cap, Mid-Cap, Large-Cap, Dividend Appreciation, US Growth, and US Value. His conclusion:

  • “When it comes to yields and one-year returns, none of the Vanguard funds win. Despite their popularity, despite the passive-indexing craze and despite the feel-good story many want to believe is true-Vanguard is a laggard.”

Hello! Time to get your retirement readiness income program into high gear and stop worrying about total returns and market value changes. Time to put your portfolio into a position where you can make this statement, unequivocally, without hesitation, and with full confidence:

“Neither stock market volatility nor rising interest rates are likely to have a negative impact on my retirement income; in fact, I am in a perfect position to take advantage of all market and interest rate movements of any magnitude, at any time… without ever invading principal except for unforeseen emergencies.”

Not there yet? Try this.

*Note: no mention of any security in this article should be considered a recommendation of any kind, for any specific action: buy, sell, or hold.

My articles always describe aspects of an investment process I have been using since the 1970’s, as described in my book, “The Brainwashing of the American Investor”. All the disciplines, concepts, and processes described therein work together to produce (in my experience) a safer, more income productive, investment experience. No implementation should be undertaken without a complete understanding of all aspects of the process.

Article Source: https://EzineArticles.com/expert/Steve_Selengut/12786

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New Stock Ideas: A Guide to Some of the Best Industries for Beginners to Invest In

Guest Article By George Botwin 

Are you new to investing? 2019, overall, has been pretty good to shareholders. The best stocks to buy are strong companies with a solid foundation, expected to prosper no matter what the future holds. Even though the trade wars are stirring up a lot of concern, there are still some relatively safe stocks, some of which are under the radar. To give you a starting point, here are some new stock ideas to think about.

Cloud / file hosting technology

Dropbox (DBX) in particular has a 112% upside. The company seems to be stabilizing thanks to new product offerings and pricing in order to better serve the needs of its 500 million+ registered users. The virtual storage needs of many people are growing so much that free accounts aren’t sufficient enough anymore, which means that the number of paid subscriptions is growing.

Wind energy

Wind energy projects are becoming more pervasive in a number of countries. This clean, sustainable source of energy is considered a good long-term prospect. There is potential that the operating costs are declining, and the pricing seems to be stabilizing.

Australian Housing

If you’re looking for new stock ideas in real estate, consider the metropolitan areas of Melbourne and Sydney. They are short of rental supply and the population is growing due to immigration. There has been a lot of money put into Australian from foreign countries like China. If you are interested in the Australian real estate market, keep rental properties at the top of your priority list.

Waste management

This isn’t the most glamorous industry to invest in, but with an increase in environmental services, pollution control, and recycling centers, it is reasonable to see the value in investing in this side of the industrial sector. It is a necessary part of everyone’s lives. A couple of organizations to look into include US Ecology (ECOL) and Waste Management (WM).

Aerospace sub-sector

There has been a boost in US military spending this past year, so it might be worthwhile to put money into companies that are part of the supply chain, such as designers and developers. The aerospace industry typically performs well in late economic cycles. As the cycle matures, there is an increase in plane orders, and a good way to play it safe is by investing in the suppliers.

Where to Get More New Stock Ideas

These are just a few recommendations. The best way to learn about new stock ideas and investment opportunities is to become part of Capitalist Exploits. There are currently 30,000+ investors getting unfiltered analysis of the financial events shaping the world. This is definitely THE investment newsletter to subscribe to.

To get closer to financial freedom, visit George’s website: https://www.financiallygenius.com/capitalist-exploits/

Article Source: https://EzineArticles.com/expert/George_Botwin/1425000

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Which Portfolio Mix, Is Best For You?

Guest Article By Richard Brody 

When, it comes to investing, and/ or, personal financial planning, there is no such thing, as, one – size – fits – all! Depending on one’s age, needs, goals, priorities, risk tolerance, purposes, etc, the most appropriate strategy, may be determined, on a case – by – case, basis! Your total assets, liquid assets, income (from a variety of sources), job security, reserves, and personal, comfort zone/ level, are significant factors, to determine, the best path forward, for you, in terms of creating a personal, investment portfolio. With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, which, mix, might make the most sense, for your specific combination, and set of conditions, and factors.

1. Risk tolerance: One of the first things to consider, is, your personal, risk tolerance. That means, in simple – terms, how might you balance, investing, and being able, to sleep, at night! Many people confuse terms, especially, when it comes to, mixing – up, the difference, between, growth, and income. How often have you heard, someone, declare, the growth – investments, they held, didn’t offer enough income, and/ or, income – focused investments don’t provide growth/ rising prices, etc? One must consider, how much risk, they are ready, willing, and/ or, able, to tolerate, and accept!

2. Goals/ objectives: Identify, clearly, your individual goals, and objectives, when considering your portfolio mix. Some goals, include: saving for a child’s education; creating a source, to purchase a future house; developing a retirement fund; etc. It makes sense, usually, to carefully, choose, the right mix of investments, for each objective. Achieving goals, generally, is easier/ simpler, when done, over a longer – period of time, so one might take advantage of the concept of Dollar Cost Averaging. This approach, often, minimizes overall – market risk, because, when purchases are made, at a specific point, every month, market fluctuation becomes far – less, relevant and significant!

3. Needs: We are individuals, and have our own needs! Avoid, trying to, Keep Up With The Joneses, because, what might make sense, for them, may not, for you, and what you need! Do you need, growth, present income, future income, or some combination, etc?

4. Small, versus, Large – Cap, equity: We often hear the terms, small – cap, versus, large – cap. This refers to the amount of capitalization, of the individual company, investment, or mutual fund. The value, and monetary stability, and strength of any company, may be a factor, in the safety, etc.

5. Bonds and Preferred Stock: Corporate bonds are debt, which companies use, to raise monies/ capital. Some are unsecured ones, but, generally, we consider, secured bonds (debentures), which are backed, by the finances of that company. Therefore, while, many consider, bonds, safe, that depends on, the quality of the specific company. Preferred stocks are generally, favored forms of equity, and pay a regular dividend. Most people, who invest in these two types of investments, seek consistent income. At this point – in – time, because of record – low, interest rates, existing bond prices, are high, because they were issued, when rates were higher, and the price of the bond, is adjusted, because, it determines the total yield.

The more you know, and understand, the better, you will determine the portfolio mix, which might, best serve your individual needs, goals, and priorities. Become a smarter investor!

Richard has owned businesses, been a COO, CEO, Director of Development, consultant, professionally run events, consulted to thousands, conducted personal development seminars, and was involved in financial planning, for 4 decades. Rich has written three books and thousands of articles. His company, PLAN2LEAD, LLC has an informative website http://plan2lead.net and Plan2lead can also be followed on Facebook http://facebook.com/Plan2lead

Article Source: https://EzineArticles.com/expert/Richard_Brody/492539

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Selecting A Brokerage Account

Once a person has decided that they want to start investing in the stock market, have stabilized their finances, created a workable financial budget, and established their investment strategy it’s time to select an investment platform/brokerage through which you want to buy and sell your stocks. This would be the most efficient and economically manner in which to do this.
There are quite a few brokerages to choose from. I’m only going to tough upon a few in this post. Most brokerage companies are now commission-free for normal traditional investing activity. There are exceptions so make sure that you check out their fee schedules to find out what transactions carry a fee with them and how much.

M1 Finance : You get high yield checking, low rate borrowing for margin trading, automation, and optimization. They do support fractional shares and you can tap into a flexible portfolio line of credit at a low base rate, and use those funds for anything: major purchases, emergency funds, or portfolio leverage. Plus, you can pay back on your schedule. There are 2 downsides to this platform: they require a minimum investment of $100 and they charge a yearly fee of $125.

Public : Another commission-free investing platform that also will give you a free stock when you open and account and fund it. Also supports the purchase/ownership of fractional shares. They have Built-in safeguards for risky stocks, they explain terms when you see them, but they don’t allow day-trading or sell you margin loans to invest with, and they don’t sell you exotic, complex investment instruments.

Robinhood : Another of the non-traditional investing brokerages that offered a free stock when you open an account and funded it. This is the one where I got my start in investing. Also allows for purchasing/ownership of fractional shares, unlimited commission-free trades in stocks, ETFs, and options with Robinhood Financial, as well as buy and sell cryptocurrencies with Robinhood Crypto. Does not offers free IRA accounts or short selling.

Webull  : Webull supports full extended hours trading, which includes full pre-market and after hours sessions. One problem with Webull is it doesn’t currently support dividend reinvestment, but they may in the future. I would take this is mean that fractional shares are not supported. Offers free IRA accounts and commission free short selling in margin accounts.

TD Ameritrade : One of the main brokerage companies that has recently been bought up by Charles Schwab. After starting out on Robinhood I moved all of my positions over to here. You can manage your own portfolio or, for a fee, have your investments managed for you. They do have a DRIP (Dividend ReInvestment Program) and allow fractional shares through it but you cannot buy fractional shares outright.

There are other brokerage accounts out there so be sure to do your research before you make your final selection. If you decide to switch later on most brokerages will allow you to transfer you account to another brokerage but there will be a transfer fee associated with it. The fee with depend on the brokerage company you are transferring your account FROM.
Many of the brokerage houses, even the smaller ones, provide tools to help you manage your investments. Depending on how much detail information you want will determine which platform you’ll want to use, from least detailed like Robinhood to most detailed like TD Ameritrade.