Stock World Weekly
by SWW - April 14th, 2013 2:38 am
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The latest Stock World Weekly is now available at Stockworldweekly.com. Use your PSW user name and password to sign in, or sign up for a free trial.
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20 Stocks You Should Own In Q2
by Sabrient - April 10th, 2013 5:04 pm
Reminder: Sabrient is available to chat with Members, comments are found below each post.
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The Champ:IBaker's Dozen 2013Weighing in with sustained earnings stamina, the BAKER’S DOZEN, the 12-month buy-and-hold champ, has NEVER lost to the market! In 2012 the BAKER’S DOZEN gained +43%, KO-ing the S&P 500 and the Nasdaq 100 and leaving some of the biggest names on Wall Street—Morgan Stanley, Goldman Sachs, Merrill Lynch, J.P. Morgan—clinging to the ropes. Its compounded annual return over the past four years is+190%. And this year? Baker's Dozen 2013 has a Q1 performance of+14.38%! |
The Challenger: Earnings Busters Q2Weighing in with powerful quarterly knockouts, EARNINGS BUSTERS Q2 is the only real challenger on the market. In 2012 Earnings Busters* gained +35.6%—also beating those same Wall Street wizards—and boasts a total compounded return of +167.6% over the last four years. Earnings Busters even beat the Baker’s Dozen in 2009 by 45 percentage points! And this year? Earnings Busters is in the lead, with a gain of+18.65% for Q1! |
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Chart 1, at the bottom of this page, shows the dramatic 2012 performance of
these two Sabrient portfolios against their peers. |
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Do you want this kind of market-beating performance?If you missed out on the 2013 Baker’s Dozen or if you don’t like the idea of waiting 12 months for a fresh list of "earnings busting" stocks . . . OR if you just want excellent returns on your investments—
Earnings Busters Q2 is a simpler-to-manage version of the 13-stock, 13-rolling-week version. It is quarterly buy-and-hold 20-stock portfolio: Simply buy the stocks at the beginning of the quarter and |
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20 Stocks to Own for Q2
by Sabrient - April 8th, 2013 6:13 pm
Reminder: Sabrient is available to chat with Members, comments are found below each post.
|
The Champ:IBaker's Dozen 2013Weighing in with sustained earnings stamina, the BAKER’S DOZEN, the 12-month buy-and-hold champ, has NEVER lost to the market! In 2012 the BAKER’S DOZEN gained +43%, KO-ing the S&P 500 and the Nasdaq 100 and leaving some of the biggest names on Wall Street—Morgan Stanley, Goldman Sachs, Merrill Lynch, J.P. Morgan—clinging to the ropes. Its compounded annual return over the past four years is+190%. And this year? Baker's Dozen 2013 has a Q1 performance of+14.38%! |
The Challenger: Earnings Busters Q2Weighing in with powerful quarterly knockouts, EARNINGS BUSTERS Q2 is the only real challenger on the market. In 2012 Earnings Busters* gained +35.6%—also beating those same Wall Street wizards—and boasts a total compounded return of +167.6% over the last four years. Earnings Busters even beat the Baker’s Dozen in 2009 by 45 percentage points! And this year? Earnings Busters is in the lead, with a gain of+18.65% for Q1! |
|
Chart 1, at the bottom of this page, shows the dramatic 2012 performance of
these two Sabrient portfolios against their peers. |
|
|
|
|
Do you want this kind of market-beating performance?If you missed out on the 2013 Baker’s Dozen or if you don’t like the idea of waiting 12 months for a fresh list of "earnings busting" stocks . . . OR if you just want excellent returns on your investments—
Earnings Busters Q2 is a simpler-to-manage version of the 13-stock, 13-rolling-week version. It is quarterly buy-and-hold 20-stock portfolio: Simply buy the stocks at the beginning of the quarter |
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Stock World Weekly: Apr. 7, 2013
by SWW - April 7th, 2013 7:54 pm
NEW: SWW writers are available to chat with Members regarding topics presented in SWW, comments are found below each post.
Stock World Weekly is here!
Click this link for the new Stock World Weekly newsletter.
(Sign up for a free trial or sign in with your PSW user ID and password.)
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Brett Arends on Why Your Mom & Pop Can’t Invest for Sh*t
by ilene - April 5th, 2013 5:04 pm
Brett Arends on Why Your Mom & Pop Can’t Invest for Sh*t
Courtesy of Joshua M Brown, The Reformed Broker
Loved this rant from Brett at MarketWatch yesterday, he's more right than he knows judging by the stuff I've seen…
First, their minds have been playing tricks on them all along. The crash of 2008 did not wipe out half their savings, unless they invested all their money right at the peak and sold right at the bottom. The reality is that it wiped out a lot of illusory gains and replaced them with a lot of illusory losses. Stock prices were wrong in 2007 because they were too high, and they were wrong in late 2008 and early 2009 because they were too low.
Second, as they now know, they sold out somewhere near the lows. They were not alone. According to the Investment Company Institute, the trade body of the mutual fund industry, U.S. investors flooded the market with stocks in the fall of 2008 and the winter of 2009. From September, 2008 through March, 2009, ordinary U.S. investors dumped $114 billion worth of stock funds. They sold at absolutely the worst time.
This is not a coincidence. The stock market is “us.”
To be clear, I don't see the renewed interest in stocks from the Mom & Pop investor class as a negative or a sign of a massive top – it's when they start quitting their jobs to daytrade or offering me tips at dinner parties that I get more circumspect about the meeting of Main Street and Wall Street.
But, we're not there yet, these people are buying index funds at this point and they are anything but giddy and care-free at the moment.
I nicked the below chart from Barry, it's hard to say the folks are truly "running with the bulls" just now. My best guess is we're somewhere hovering between Media Attention – "new highs!" – and Enthusiasm. Could be wrong, just a hunch.
Source:
Mom and pop: The world’s worst investors (MarketWatch)
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Stock World Weekly – March 31, 13
by SWW - April 1st, 2013 12:44 am
NEW: Authors are available to chat with Members regarding topics presented in SWW, comments are found below each post.
Here's this week's edition of Stock World Weekly. Click here to sign in, or sign up.
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A Little Strategy, a Little Action
by ilene - March 25th, 2013 9:13 am
A Little Strategy, a Little Action
Here's the latest Market Shadows newsletter: A Little Strategy, a Little Action, 3/24/13
Strategy: Averaging down in a quality company has been a successful market technique according to recent evidence. However, a prerequisite is that you don't overweight your portfolio with an outsized initial position.
"During the year, 100% of the DJIA companies traded below their annual peaks. The intra-year declines ranged from as little as 5.8% (JNJ) to as great as 62.2% (HPQ). 30 out of 30 closed last week above their 2012 nadirs.
"The biggest recovery came in last year’s biggest dog (HPQ). Other large percentage rebounds occurred in lower quality BAC, old-tech companies (CSCO & IBM) and the controversial bank JPM. While those stocks were ‘falling knives,’ the old adages about never averaging down were certainly quoted numerous times. Adhering to that advice was a hedge against prosperity." (Of course buying at the absolute bottom is better than averaging down, but catching that bottom requires luck and we can't count on that…)
Strategy: Selling puts, for those comfortable with selling options, is a way to either profit by keeping the premium, or enter a stock at a lower price than it's currently trading at. We have our Virtual Put Selling Portfolio up and running.
Actions:
Paul sees less bargains than he did several months ago. However, he still likes Express Scripts (ESRX), Quest Diagnostics (DGX), Lab Corp. (LH), Coach…
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Stock World Weekly (3/24/13)
by SWW - March 24th, 2013 3:34 pm
NEW: Newsletter writers are available to chat with Members regarding topics presented in SWW, comments are found below each post.
Here's the latest Stock World Weekly for your enjoyment. Click on this link.
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Is The Government Lying To Us About Inflation? Yes!
by ilene - March 22nd, 2013 9:51 pm
Is The Government Lying To Us About Inflation? Yes!
Courtesy of JOHN MAULDIN
In today’s Outside the Box, Gary D. Halbert (my old and very dear friend and former business partner of many years) reminds us about a few significant facts concerning the Consumer Price Index (CPI) that mainstream economists and the media tend to ignore. The central question is whether the CPI is really indicative of the actual inflation rate. Not likely, says Gary, since the US Bureau of Labor Statistics (BLS), which compiles the CPI, has engaged in methodological shenanigans over the past couple decades (as has been well documented by John Williams of ShadowStats, among others). The upshot of all their monkeying with the numbers is that the official rate of inflation may be two to four times lower than the actual rate (which is rather convenient if you’re a government bureaucrat trying to hold down interest costs and Social Security payments).
These changes are hotly debated in academic circles. There are many economists who agree with the changes and can show with their models that inflation is low. That is the currently accepted wisdom, or what passes for it. The problem is that inflation only shows up, as one person put it, in the things we actually buy. If your main costs are food, energy, education, and healthcare (ring any bells?), then inflation is a great deal higher than 2%. Other items are actually falling in price. It comes down to the mix of items in the calculations and whether you buy into the concepts of substitution (if beef gets too expensive we buy hamburger rather than steak) and “hedonics,” which says that prices of products drop over time as quality and manufacturing efficiency improve, so the calculation of inflation should take this into account.
Which means you can have official inflation at a low level (or even falling for certain items), while the amount you actually spend out of your very real pocket is rising! And thus the debate.
Having refreshed us on the basic techniques of CPI massage, Gary turns to food and energy, which the BLS includes in “headline CPI” but omits from “core CPI.” He points out that while headline CPI jumped an unexpected 0.7% in February, core CPI rose only 0.2%. That is, food and energy price increases accounted for more than 70% of the rise. “Not good for the
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Damned if You Do, and More Damned if You Don’t
by ilene - March 19th, 2013 2:41 pm
Damned if You Do, and More Damned if You Don’t
Courtesy of Wade of Investing Caffeine
Source: Photobucket
In the stock market you are damned if you do, and more damned if you don’t.
There are a million reasons why the market should or can go down, and the press, media, and bears come out with creative explanations every day. The “Flash Crash,” debt ceiling debate, credit downgrades, elections, and fiscal cliff were all credible events supposed to permanently crater the market. Now we have higher taxes (capital gains, income, and payroll), sequester spending cuts, and a nagging recession in Europe. What’s more, the pessimists point to the unsustainable nature of elevated corporate profit margins, and use the ludicrous Robert Shiller 10-year Price-Earnings ratio as evidence of an expensive market (see also Foggy Rearview Mirror). If an apple sold for $10 ten days ago and $0.50 today, would you say, I am not buying an apple today because the 10-day average price is too high? If you followed Robert Shiller’s thinking, this logic would make sense.
Despite the barrage of daily concerns and excuses, the market continues to set new record highs and the S&P 500 is up by more than +130% since the 2009 lows – just a tad higher than the returns earned on cash, gold, and bonds (please note sarcasm). Cash has trickled into equities for the first few months of 2013 after years of outflows, but average investors have only moved from fear to skepticism (see alsoInvesting with the Sentiment Pendulum ). With cash and bonds earning next to nothing; gold underperforming for years; and inflationary pressures eroding long-term purchasing power, the vice is only squeezing tighter on the worrywarts.
Are there legitimate reasons to worry? Certainly, and the opportunities are not what they used to be a few years ago (see also Missing the Pre-Party). Although an endangered species, long-term investors understand backwards looking economic news is useless. Or as Peter Lynch wisely stated, “If you spend 13 minutes a year on economics, you’ve wasted 10 minutes.” The fact remains that the market is up 70% of the time, on an annual basis, and has been a great place to beat inflation over time. It’s a tempting endeavor to avoid the down markets that occur 30% of the time, but those who try to time the market fail miserably…
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Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...
Ilene is editor and affiliate program
coordinator for PSW. She manages the Favorites backup site
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