Investment Strategies 03 (Jul 13 - Mar 19)

[winston]

Cramer reveals the No.1 reason he outperformed the market as a money manager

by Abigail Stevenson

Jim Cramer uncovered the importance that cash plays in a portfolio, and why he considers it the most underrated investment on Wall Street.

The biggest mistake Jim Cramer sees investors make is that many think they are supposed to be fully invested at all times.

Heck, even some money managers have told him that they are supposed to have all their money in stocks.

This is complete nonsense!

Having cash on hand when a market correction occurs is the key to protecting a portfolio. Sometimes the market will stink, and there is nothing to do but just sit in cash.

"In fact, one of the chief reasons that I outperformed pretty much every manager in the business during my 14-year run as a professional money manager is that there were substantial blocks of time when I was largely in cash," the " Mad Money " host said.

Cash is the perfect hedge in an environment when the market hits dangerous highs and could protect from devastating losses.

Cramer considers cash the most underrated investment of all. Whenever he sees the market spike, he starts to sell a little and trim here and there to build up a supply of cash. He sells on strength and buys on weakness.

Otherwise, Cramer fears that investors could wind up selling their best stocks just to hang onto their worst stocks because the higher-quality stocks stopped going up — a big mistake.

However, investors must be aware that there are many circumstances that will cause the stock market to plummet. That means they need to be ready for a correction.

Having a pile of cash in your back pocket could mean the difference between good and bad stocks in your portfolio. And keeping a solid portfolio that will ensure that it will be able to bounce back from a correction. That means having cash to subsidize, instead of selling high-quality stocks, so you can outperform the best money managers out there, too.

Source: CNBC

[behappyalways]

A recession is coming — so hide in gold, says influential investor Raoul Pal
http://www.marketwatch.com/story/a-rece ... yptr=yahoo

[winston]

Here are six moves you should make right now

by William Patalon III

1. Reassess Your Plan: You need a financial plan – one that delineates how much you want to have, when you want to have it, and what you’re willing to do to get there. Take a look to see where you are now – to see if you’re on target or not. Make any adjustments. And be realistic.

2. Look at Your Finances: The single-best thing you can do right now is raise cash. That will give you a “cushion” to navigate a tough economy and rocky markets, and will also allow you to take bigger stakes should bargains emerge in a sell-off – as they will. Cut back on superfluous expenses and sock the savings away.

3. Continue with Your “Accumulate” Strategy: Being opportunistic is good, as long as it’s part of your plan. We’ve been advocating this approach for more than a year, telling folks to take starting stakes in the stocks they’d like to own – and to add to those stakes with sell-offs. That’s worked exceptionally well with Alibaba Group Holding Ltd. (NYSE: BABA) and Microsoft Corp. (Nasdaq: MSFT). And it will continue to work with stocks we’ve identified here.

4. Create a “Shopping List”: As part of this review, start a list of companies whose shares you’d like to own at the “right” price. One company we believe has a big upside – which we’ve talked about here in some depth – is Facebook Inc. (Nasdaq: FB). The stock’s now at about $129 – we believe it will hit $250 a share in five years.

5. Look for Innovation: Big inventions feeding into big trends will lead to big profits. One great example is General Electric Co. (NYSE: GE), whose “digital industrial” strategy will mesh superbly with its conventional businesses in power generation, aircraft engines, and medical diagnostics, to name a few.

6. Keep Your Wits: Eventually, tough times cycle around. The folks who have a plan, maintain that plan, and don’t panic usually navigate those stretches pretty well. And they often end up coming out way ahead. There’s no reason you can’t be one of those “winners.”

Source: Money Morning

http://dailytradealert.com/2016/10/24/s ... right-now/

[winston]

Five Guidelines to Profit From Big Price Swings

1. Don't overpay in the first place.

2. Seize opportunities to buy when stock indexes or "good" companies are "on sale."

3. Sell when the price is clearly too high for decent future returns.

4. Watch out for real value impairments (as opposed to unjustified price falls or temporary setbacks).

5. Don't panic if the price of a good investment falls. Stay calm, be patient and see it through.

Source: Non-Dollar Report

[winston]

7 Outside-the-Box Investing Strategies to Score Big Dividends

Most investors don't know about these seven high-yield strategies

By Lawrence Meyers

Source: Investor Place

http://investorplace.com/2016/11/big-di ... CK0UPl96M8

[winston]

How to Be More of an Investor and Less of a Trader

By Geoff Gannon

Question One: “Is this a business I’m comfortable owning forever?”

Question Two: “What will this business look like in five years?”

Question Three: “What would that business be worth in five years?”

Question Four: “How much am I paying today for that?”

Question Five: “What’s the best stock I don’t own yet?”

Question Six: “Do I really think this is the best opportunity I’m going to get all year?”

Source: Guru Focus

http://www.thetradingreport.com/2016/11 ... -a-trader/

[winston]

How to Hang In and Make More Money When Other Investors Flee

By SID RIGGS

Step No. 1: Set Your "Sell" Plan… Before You Buy

They're trailing stops, and scaling out of a position…

1) begin with a 25% trailing stop;
2) once my position is up 30%, I like to tighten my stop up to a 19% trailing stop, which makes my stop 5% over my entry price;
3) once my position is up 40%, I'll tighten my trailing stop to 15%;
4) and once my position is up 50%, I'll settle in with a trailing stop of 12.5% for the remainder of the holding period – or until I get to a 100% gain, which is when I'll start scaling out of the position.

Step No. 2: Rebalance Your Profits

The key here is that it's a predetermined time – not a time based on your discretion, because that could leave you open to emotional biases, which typically work against you.

The beauty of rebalancing is that it takes all the guessing out of the equation because it forces you to sell the assets that have increased in value (and are subsequently overweight) and buy assets that have gone down in price (and are subsequently underweight).

Source: Money Morning

http://moneymorning.com/2014/08/29/beat ... ese-steps/

[winston]

7 Reasons You Will DOUBLE Your Money in the Next 12 Months!

by Hilary Kramer

1. The end of “election paralysis.” Wall Street hates uncertainty.

2. The new administration will cut our insanely high corporate taxes — the highest in the free world — to a level where we can now compete with other countries.

3. Defense spending will pump-up the military/industrial complex.

4. Big pension funds will line up their investments for the beginning of the New Year.

5. Massive infrastructure spending will start.

6. Business regulations will be gutted…

7. Fourth-Quarter earnings will pop… because the election boosted stocks.

Source: Absolute Capital Return

[winston]

Top 10 investing tips for a killer portfolio in 2017

by Jill Cornfield

Source: Yahoo Finance

http://finance.yahoo.com/news/top-10-in ... 00395.html

[winston]

Investing When No One Really Knows What to Do

by Ben Carlson

“Risk control is the best route to loss avoidance. Risk avoidance, on the other hand, is likely to lead to return avoidance as well.”
– Howard Marks

Source: A Wealth Of Common Sense

http://awealthofcommonsense.com/2017/03 ... hat-to-do/