What To Buy Now

I am sure that if you have a brokerage account with a "full service" broker you have been getting calls about what to buy and sell. If you have big losses in certain stocks you might be hit with that great Wall Street lie to buy more so you can 'Dollar Cost Average'. It doesn't work.

In a recent study going back for 5 years a dollar cost averaging program was set up buying the S&P500 Index mutual fund. At the end of 62 months the investor had put in $31,000 and it was now worth $31,162. You would have done better in a savings account at your bank. And that assumes there was no commission or fees of any kind.

Let's say you owned a stock such as Cisco. This one is held by hundreds of thousands of investors and almost every one of them has a loss. It traded as high as $82 and for more than a year was in a range over $50/share. It was the darling of very broker from here to Timbuktu and when it started down they kept yelling buy more, buy more. Another one in this same category is Lucent going from about $80 to $5. Yuk!

Now Wall Street is trying to get you to buy more of these losers so you can "get out even" when it goes back up. And pigs can fly. Think about this. The person that currently owns these stocks or any similar ones with big losses is now waiting for them to go back up so they can "get out even". Ho boy. It should be extremely obvious that every time one of the monsters sticks its head up it is going to be hit with tremendous selling. There isn't a chance that any of them will ever get back to their old high prices ? or even close.

What does an investor do? Clean out your garage and have a yard sale. Get rid of this junk and put your money to work where there is a chance to make a profit. And don't buy any stock that has lost 50% to 80% during the bear market of the last 2 years. Brokers will tell you these are now "cheap" and are a good buy. Not a chance. There are too many people waiting to sell.

Now is the time to try to find a completely different equity that did not get hammered last year. Look for one that has a nice smooth upward pattern. Buy it and this time know how much loss you will be willing take if it goes down. How do you do that? Very simple. Use a trailing loss limit order called an open stop-loss order about 10% under the lowest price of the previous month - and keep moving it up as the price advances. That way you will not give back profits.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.

Copyright 2005

In The News:

Hot and Cold Stocks of Mutual Funds in February 2019  MoneylifeIn February 2019, Kotak Mahindra Bank and Axis Bank were the most preferred stocks of Indian mutual funds. The net purchases of Kotak Mahindra Bank were ...
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How mutual funds turned recent crises into opportunities: Nimesh Shah, ICICI Pru AMC  Economic TimesEvery crisis in financial markets is also an opportunity to make money. And some of the nimble-footed fund houses on Dalal Street have been doing exactly that ...
What top 5 money managers bought and sold in February  Economic TimesFebruary was the fourth consecutive month of decline in net investment into equity mutual funds.
Mutual Funds increase holding in ‘attractively valued’ oil & gas stocks  Economic TimesMUMBAI: Mutual funds have been adding shares of oil and gas companies such as GAIL, HPCL, BPCL and ONGC over the last few months, encouraged by ...
CPSE ETF-5 subscribed six times  Economic TimesMumbai: The fourth further fund offer (FFO 4) for state-run companies by Reliance Mutual Fund was subscribed six times the shares on offer, likely prompting the ...
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Here are 30 stocks that fund managers bought & sold in February  Moneycontrol.comEven the month of February witnessed the lowest inflow in equity mutual funds in the last 2 years. Only Rs 5122 crore of *fresh* inflows took place in equity funds.
Funds lap up select PSU stocks on valuation comfort  Economic TimesHere are five PSU stocks which have got large amount of buying from fund managers in Feb.
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Hot and Cold Stocks of Mutual Funds in January 2019  MoneylifeIn January 2019, Axis Bank and HDFC Bank were the most preferred stocks of Indian mutual funds.
Here's a list of top stocks bought and sold by mutual funds in February  CNBCTV18Indian shares were flat—down 0.4 percent—for the third consecutive month in February 2019, as the street exercised caution amid a flurry of unsupportive ...
At least 100 MF schemes own these stocks; that should mean something, right?  Economic TimesDomestic institutional investors have become one of the key market drivers in recent years.
Sebi seeks to make mutual funds' valuation process fairer  Economic TimesThe Sebi board approved easing of norms for raising of funds through instruments like real estate and infrastructure investment trusts.
What India's top three mutual funds bought and sold in February  LivemintMUMBAI: Inflows into Indian equity mutual funds in February were the smallest in more than two years as savers held back investments amid market volatility ...
Inflation in Check: 3 Utility Mutual Funds to Buy Now  NasdaqCommendable U.S. economic growth, defying slowdowns elsewhere in the world, and solid job additions were expected to lift inflation. And the Fed was.
Last-minute rush for tax saving? You can look at these ELSS funds  Economic TimesWith just a few days left of the current financial year, many investors would be searching last minute for investment option under Section 80C to save on their ...
Private banks, oil & gas companies find favour among fund managers  Moneycontrol.comAxis Bank was one of the preferred stocks among MFs in February, with net buying by 19 funds.
Market rally shifts sectoral pecking order: Look who is at the forefront  Economic TimesDomestic software exporters and banking stocks have outpaced equity benchmark Sensex in terms of returns so far this financial year 2018-19. While the BSE IT ...
Investment limits Sebi prescribes for mutual funds  LivemintDid you know that there are guard rails that the Securities and Exchange Board of India (Sebi) has put in place to protect you from the risks of over-exposure to a ...
Stocks in the news: Bajaj Auto, Infosys, Mindtree, DB Realty, Asian Oilfield, Jet Airways, PFC  Moneycontrol.comDB Realty | Asian Oilfield Services | | Jet Airways | KIOCL | PFC | REC | IDFC First Bank and Zee Entertainment Enterprises are stocks which are in the news ...
3 Hartford Mutual Funds to Buy Now  NasdaqHartford Funds, a segment of The Hartford Financial Services Group, Inc. (HIG), has total assets of around $104.8 billion under management (as of Dec.
Star Trader's China Stock Fund Lures $10 Billion in 10 Hours  BloombergIt took just 10 hours for a star Chinese stock picker to attract more than 70 billion yuan ($10 billion) of orders for his new firm's debut mutual fund, the latest sign of ...
Why investors should consider buying stock in the fund company, not the fund  MarketWatchThese investing and stock-market stories offer tips and ideas about what to watch for — and watch out for — when it comes to your money.
As India lags behind global peers, this is how you can make money  Economic TimesThe domestic equity market has been underperforming most of its global peers for two months now. On a year-to-date basis, India is the odd man out with ...
Large-Cap Mutual Funds: Big Inflows, Small Returns  BloombergQuintA tough 2018 has brought the average one-year alpha of large-cap mutual funds down to (-)7 percent. In fact, one-year alpha of large-cap funds has been ...
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Animal spirits? Military posturing has clouded Indias stock market rally  Business StandardThe S&P BSE Sensex Index is currently trading at almost 24 times one-year forward earnings, double the multiple of 14 going into the 2014 elections.
The Mutual Fund Show: Why Nimesh Shah Has A Boring Portfolio  BloombergQuintFor Nimesh Shah, this is the season for “boring portfolios”—not chasing spectacular returns but picking stocks that are less volatile.
Investors facing a tax bill for stock mutual funds that fell in 2018  The Seattle TimesAdding insult to injury, investors holding mutual funds in a taxable account will have to pay taxes on their holdings, even though their value declined last year.
Here's why carnage in mid & small-cap stocks hit hybrid aggressive funds  Moneycontrol.comOn average, funds held about 20 percent of their portfolio in mid-and-small-cap stocks over 2018. This share may not seem high. But, with the extent of midcap ...
From best to worst, India's stock market sets off alarm bells  Economic TimesIndia has wiped out $113 billion this year after winning the regional equity crown in 2018.
Investor rush for high dividend yield stocks lifts Bharat 22 ETF returns  Economic TimesMany of the cash-rich PSU stocks that are part of Bharat 22 are high dividend yield companies.
A high-risk, high-reward game  BusinessLineMF promoter lending need not be banned for debt funds, but the exposures need to be in high risk schemes.
Vanguard Index Funds: What They Are and How to Invest  NerdWalletVanguard index funds kicked off the passive-investing revolution. Whether you buy directly from Vanguard or via your brokerage, they make investing easy.
Long-Term Prospects for Emerging Markets Puts 3 Funds on Top  NasdaqCertain global trends may be turning into tailwinds for the emerging markets this year. The Fed's dovish outlook, economic stimulus in China and a.
Warren Buffett Bullish on Banks in 2019: 3 Funds to Buy  Zacks.comWarren Buffett's bullishness, opportunities for value investors and Trump's deregulatory measures are expected to boost America's banking industry in 2019.
Steady Interest Rates Buoy Gold: 3 Fund Winners  Zacks.comThe Fed has indicated that even if economic conditions change in the near term, it would adopt a more controlled approach toward hiking interest rates this year.
Goldman's portfolio of investors' favorite stocks is one of its best yet, returning 19% a year  CNBCGoldman Sachs made a portfolio of the most loved stocks by both hedge funds and mutual funds, and it is crushing the market and the bank's own secret ...
These 2 stocks could turn out to be next Eicher & Bajaj Finance: Amit Jeswani, Stallion Asset  Economic TimesWe are in the 14th month of bear market and in India, this cycle lasts only 15 months, says Jeswani.
Indonesian millennial gives bride mutual funds as dowry - The Jakarta Post  Jakarta PostUnlike most brides who receive gold, money or the latest brand name bags as a dowry, Intan received a diamond necklace set and mutual funds published by ...
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Stocks in the news: Bharti Airtel, DHFL, ABB India, Jet Airways, Infosys, Forbes & Company  Moneycontrol.comJet Airways | Infosys | Forbes & Company | Rossell India | Metalyst Forgings and National Steel are stocks which are in the news today.
Where should I save my money? Savings account vs. mutual fund vs. CD  Business InsiderSaving money in a traditional checking account doesn't cut it. Depending on your situation, savings accounts, mutual funds, and CDs can be better.
Lumentum Stock Upgraded, Analyst Says Worst Over For Apple Worries  Investor's Business DailyJPMorgan upgraded Lumentum Holdings on views that Apple-related worries should ease while demand for optical devices will pick up. Lumentum stock ...
5 Investments to Make With a Lump Sum | Stock Market News | US News  U.S. News & World ReportPurchasing stocks and ETFs with a lump sum investment can yield high returns.
3 Simple Steps to an Index Fund Portfolio  ConsumerReports.orgFor beginning investors, just getting started can be the biggest challenge. But it's easier than ever to build an index fund portfolio. Consumer Reports explains ...
Passive investing automatically tracking indexes now controls nearly half the US stock market  CNBCPassive investing, made up of funds tracking market barometers, has now taken over nearly half the stock market as more investors shun stock-pickers and flock ...
Small Cap Stocks Set Fast Pace As Market Rebounds  Investor's Business DailyU.S. stock indexes opened lower Thursday but then quickly reversed to the plus side. Small cap stocks outperformed, while the Nasdaq dashed higher despite ...
Mercury Stock Flies High On F-35, Defense Hikes  Investor's Business DailyThe Trump administration is proposing a 5% 2020 defense budget increase, and that's good news for F-35 supplier Mercury Systems. Mercury stock is up.
How to Find Hidden Stock Bargains  Barron'sThere are more than 100000 stocks traded worldwide — far too many for an investor to spend even five minutes on each. Here's how to start your search.
Jim Cramer: The IPO Whistle Stop Tour, From Levi Strauss to Uber to AirBnB  TheStreet.comLet's talk about the life cycle of the IPO market. On Thursday, the new cycle began with the crowning achievement of a classically good deal with a fantastic ...
Govt tweaks rules, increases limit to disclose investment in stocks, mutual funds for employees  Economic TimesNew Delhi: The Centre has increased the over 26-year-old monetary limit on disclosure of investment in shares and mutual funds by employees to six months of ...
Can This Software Maker Keep Up Earnings Surprises?  Investor's Business DailySPS Commerce Inc. (SPSC) has a recent habit of surprising Wall Street by beating earnings estimates. When it does, its stock price usually gaps up and sets up ...
7 stocks most favoured by mutual funds over last one year  Economic TimesAs the markets hit a speed bump, stocks favoured by mutual funds appear to be safer bets.
20 Common Beginner Investor Mistakes -- and How to Avoid Them  The Motley FoolBeware of hot stock tips and don't ignore index funds. Learn more about those and other valuable tips.
Can mutual funds give multibagger returns like stocks?  Economic TimesStocks can be multibaggers. They can offer extraordinary returns in a very short period. Can mutual funds ever do that? This was a question thrown at Rajeev ...
Mutual funds bet big on these 30 stocks in November; do you own any?  Moneycontrol.comMF industry assets grew to Rs 23.4 lakh crore, on the back of improved inflows into liquid funds and steady equity markets.
Check out what top five mutual funds bought & sold during October selloff  Economic TimesNEW DELHI: Mutual funds stood resilient as industry's asset base increased to Rs 22.23 lakh crore in October in spite of a heavy correction in the domestic ...
How income from stocks and mutual funds are taxed for an individual  Moneycontrol.comCapital gains from transfer of unlisted share are considered as STCG where period of holding is less than or equal to 24 months, and LTCG when holding period ...
Fund managers ready to go shopping after sharp correction in stocks  Moneycontrol.comMutual funds that were holding around 8-10 percent cash level in their equity portfolio are likely to purchase shares of companies in banking and financial ...
11 of the Best Index Funds to Buy Today  Kiplinger's Personal FinanceHere are 11 of the best index funds you can buy to achieve a number of financial goals for relatively low costs.
Stock Indexes Surge: Is It Time To Take Some Profits?  Investor's Business DailyThe Nasdaq overcame weakness in the biotech space to end up 1.4%. Other stock indexes also did well.
Stocks in the News: Investors Taking a Second Look at Gates Industrial Corporation PLC (:GTES) After Recent Market Moves  The Coin GuildMajor market players are buzzing over Gates Industrial Corporation PLC (:GTES) as their share price hit $15.29 at the end of the most recent trading session.
The 5 Best Mutual Funds for a Rocky Market  Kiplinger's Personal FinanceHere are five of the best mutual funds for a jumpy market like today's. Some are pure stock funds, while others hold some bonds.
Stock Watch: Investors Keen on Shares of Information Services Group, Inc. (NASDAQ:III) as it Makes Headlines With Moves  The Coin GuildMajor market players are buzzing over Information Services Group, Inc. (NASDAQ:III) as their share price hit $3.62 at the end of the most recent trading session.
How stocks picked by mutual funds over 2014 to 2017 have performed  Economic TimesWhile the most wanted stocks of 2014 and 2015 have done well, the recent picks have disappointed.
Stocks in the News: Investors Taking a Second Look at Forty Seven, Inc. (:FTSV) After Recent Market Moves  The Coin GuildMajor market players are buzzing over Forty Seven, Inc. (:FTSV) as their share price hit $18.38 at the end of the most recent trading session.
27-year-old rule changed: Disclosure limit on MF, stock investment up for bureaucrats  Economic TimesGroup A and B officials had to intimate government if total transaction in shares or MFs exceeded Rs 50K.
Mutual funds' exposure to banks hits 3-month low of Rs 1.88 lakh crore in Sept  Economic TimesMutual funds' holding of banking stocks declined by over Rs 21,600 crore to Rs 1.88 lakh crore in September, driven by the correction in equity markets.
The dangers of high mutual fund inflows  LivemintMutual funds have put ₹2.4 trillion into markets in the last two years.Equity mutual funds receive ₹8000 crore monthly through SIPs.
What top mutual funds bought and sold last month  LivemintMumbai: Inflows into Indian equity mutual funds in January were the smallest in two years as heightened market volatility and political uncertainty cooled ...
Shall I buy the HDFC AMC stock or mutual fund?  LivemintThe HDFC Asset Management Co. Ltd stock closed 65% up on the first day of listing over its IPO price of ₹ 1,100 per share. Investors who sold on day one, saw ...
Mutual funds garner over Rs 65,000 crore in Jan  Economic TimesMUMBAI: The mutual fund industry added assets worth Rs 65,439 crore in January 2019, taking total assets under management to Rs 23.37 lakh crore.
Why HDFC Bank stock is among the top picks of mutual funds  Business TodayPrivate sector lender HDFC Bank, the third-largest Indian firm by market capitalisation, is among the favourite stocks in the portfolios of mutual funds. Despite ...
Mutual funds may need smart bets on smallcap stocks to beat ETF show  Economic TimesSmallcap stocks could see up to ₹1 lakh cr inflow as fund managers look for potential winners: Analysts.
Is it a good time to invest in small-cap mutual fund schemes?  Economic TimesBears have taken control of the small and mid-cap territories in the stock markets. The Nifty Smallcap100 index has plunged nearly 27% this year, after a 3-4 ...
Why stopping mutual fund SIPs when stock market falls can jeopardise your financial goals  Economic TimesFear has returned to Dalal Street. Caught in a perfect storm of weak macroeconomic numbers, the IL&FS crisis and fear of more defaults, equity markets have ...
Does it make sense to invest in mutual funds when the markets are down?  Economic TimesI am looking to invest Rs 20,000 per month via SIP in mutual funds for an investment period of more than 20 years. The idea is to maximize wealth to use for my ...
Gold, mutual funds, equity - where to invest in 2019?  Moneycontrol.comAs we enter 2019, the question on everyone's mind is: can we say goodbye to market volatility that 2018 unleashed upon us? The answer may not be that simple ...
New stock ideas boost equity mutual fund portfolios  LivemintIt is imperative for mutual fund houses to beef up their research capabilities, to be able to identify more winning new ideas.
Why stock market volatility is beneficial for mutual fund SIP investors  Economic TimesWhile investing through systematic investment plans, you make more money precisely because the markets are facing volatility.
When should you sell your mutual fund schemes? - Stocks and equity mutual funds are different  Economic TimesInvesting in an individual stock and equity mutual fund scheme is different. You must look at various parameters like key ratios while investing in a stock. Hence ...
Mutual fund investing for the conservative: Should you stick to largecap funds only?  Moneycontrol.comFinancial planners advocate investing in equity mutual funds to beat inflation and build a corpus that will cater to one's future needs, even if one is a conservative ...
What India's top three MFs bought and sold in January  Economic TimesStock funds took in a net Rs 6160 crore, the least since January 2017.
Is your mutual fund buying or selling stocks too much?  LivemintA mutual fund scheme's turnover ratio tells you how frequently its fund manager buys and sells the underlying stocks. Typically, higher the turnover ratio, more ...
How your mutual funds played the balancing act during stocks crash  Economic TimesBy Bhavana Acharya The last three months has been a bumpy ride for largecap stocks. The year so far has been unkind to the midcap and smallcap set.
Hot and Cold Stocks of Mutual Funds in November 2018  MoneylifeIn November 2018, Axis Bank and ICICI Bank were the most preferred stocks of Indian mutual funds.
Sebi issues new format for mutual funds' monthly report  Economic TimesFrom April 2019 onwards, AMCs will have to submit the MCR to Sebi in the new format by the third working day of each month.
Flows to India equity mutual funds smallest in 23 months as demand cool  LivemintMumbai: Flows into Indian equity mutual funds in December were the smallest in almost two years as increased market volatility and political uncertainty cooled ...
Top fund houses are busy lapping up PSUs; what’s behind this new-found love  Economic TimesNEW DELHI: India's top three mutual funds, which manage over Rs 9 lakh crore in debt and equity assets, added a number of PSU stocks to their schemes in ...
Should you shift from large-cap mutual funds to index funds?  Economic TimesThe index fund category of mutual fund schemes is slowly gaining traction among investors. The fortunes of index funds are changing as not only are they being ...
Mutual funds that destroyed most investor wealth in the September selloff  Economic TimesThe recent selloff in the stock market has raised fears of a rush for redemption in mutual funds.​
Are mid and small-cap mutual funds holding too many illiquid stocks?  Economic TimesLiquidity has been scarce in Indian capital markets in recent weeks. Mutual funds have also not been spared the pain, with liquid and money market funds ...
Quantum Mutual Fund uses cash pile to buy stocks cheap  Economic TimesQuantum Long Term Equity Value Fund, where value investing is the pronounced fund allocation theme, has brought down the level of cash at its plan to the ...
Fund managers raised stake in 194 stocks in Dec quarter. Is it a good idea to follow them?  Moneycontrol.comif good or quality stocks are getting hampered with external factors, investors should use the dips to buy into stocks which they think hold long term growth ...
Fund managers' picks: Large, mid & smallcap stocks that MFs bought, sold in Dec  Moneycontrol.comMF assets declined to Rs 22.8 lakh crore in December 2018 from Rs 23.4 lakh core in Nov 2018 on the back of moderation in the flows in equity funds and ...
Tata Motors stock crash: Over 200 mutual fund schemes own equity worth Rs 4,000 cr  Moneycontrol.comIn terms of value, more than Rs 4000 crore of mutual fund money is riding on Tata Motors, and approximately Rs 1700 crore in Tata Motors DVR.

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