Take The Time

You must take the time once a month to review your investment portfolio. It won't take long - less than one hour, maybe 15 minutes.

I don't believe the average working person or business owner should own anything but mutual funds because these are the easiest to buy and evaluate. However, if you do own some stocks the first thing to ask yourself is if each issue is selling for more than you paid for it. If it isn't you must realize this is not where you want to have your money so the best course of action is to sell it NOW and put those funds into some other stock or fund that is going up. You may have a stock you bought 3 years ago and it has risen only 10% or 25% and you can't decide what to do with it - keep it or sell it - because it has been going sideways for a long time. It might go up. It might go down. Call your broker (a discount broker, I hope) and place a 10% good-'til-cancelled (GTC) stop-loss order. Each month review your stop and move it up (never down) if the stock has risen. This way you don't have to think about it and the market itself will tell you when you should be out.

Stops make you money! Brokers almost NEVER recommend stops especially when they want you to buy something. If it goes down they say it is a correction and "it will come back". But when? Remember how they were touting Boston Chicken at $35 and $40 per share? Today it is 50 cents per share.

It is my strong opinion that very few people have the ability to pick winning stocks. I've been trading more than 30 years and I'm right only 50% of the time. Even when I was an exchange member for 17 years and floor trader I would put in a stop as the same time I made the purchase.

If your portfolio is not making a better return than the S&P500 Index you would be better off having your funds in something like the Vanguard Index500 mutual fund. You will then be staying even with the market as a whole.

There are some basic things that move a particular stock. According to a recent study, 49% of the movement of an individual issue is due to the sector in which it resides: technology, financial, automotive, real estate, etc., 31% is due to the general direction of the market itself and only 20% is due to the quality of the company. In other words owning stock in a great company doesn't mean the stock will go up. The whole group must find favor with institutions, banks and pension plan buyers. They move the market.

Easier said than done: you have to be in the right place and at the right time to see your stock go up. That is why you must take the time to review your invests once a month to keep up with any changes that might be necessary.

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.

1-888-345-7870; [email protected]

In The News:

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AppleInsider

Big mutual funds loaded up on AAPL in Q3, some now worrying about growth
AppleInsider
Even smaller funds got in the act. Coatue Management grew its Apple stock holdings to over 884,000 shares, and Tiger Global Management now has over one million shares. Warren Buffett's Berkshire Hathaway increased its position in Apple by 522,802 ...

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Investorplace.com

5 Vanguard Mutual Funds to Depend On
Investorplace.com
Risk-averse investors should note that VIHAX devotes just over 20% of its weight to emerging markets stocks, so this may not be suitable for extremely conservative investors looking for mutual funds to buy. However, eight of this Vanguard fund's top 10 ...


Zacks.com

Consider These 3 Mutual Funds From the JP Morgan Portfolio
Zacks.com
These are companies with market capitalization equivalent to those listed on the Russell 2000 Growth Index stocks and below $4 billion at the time of purchase. The fund seeks capital appreciation for the long run. JPMorgan Small Cap Growth Fund A has ...

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Stocks have struggled in 2018. Bonds too. Oh, and gold.
Minneapolis Star Tribune
Bonds, meanwhile, have been hit by rising interest rates. When rates climb, it makes the smaller interest payments paid by older bonds less attractive, and their prices correspondingly drop. The largest U.S. bond mutual fund, Vanguard's Total Bond ...

and more »

U.S. News & World Report

How to Find Gender Equality Mutual Funds and ETFs
U.S. News & World Report
Or, if you don't know what you're looking for, you can filter by fund categories, families and types, and if it's diversified or labeled as socially responsible. You can also compare major fund managers to see how their mutual funds stack up on gender ...

and more »

CNBC

Buffett's big bank bet explained using a simple measure of stock market value
CNBC
As one example, the Invesco KBW Bank ETF (KBWB) provides strong exposure in a concentrated ETF to Buffett's banking stocks, according to Todd Rosenbluth, director of mutual fund and ETF research at CFRA. Bank of America, J.P. Morgan, US Bancorp, ...

and more »

Reuters

Dell sweetens VMware tracking stock offer with higher price, board seat
Reuters
The tracking stock is tied to an 81 percent economic stake in VMware. The transaction will allow Dell to bypass the traditional IPO process, which would likely have involved grilling by stock market investors over Dell's $52.7 billion debt pile. Hedge ...

and more »

Business Insider

Investing titans Fidelity, Janus Henderson, and JPMorgan loaded up on Apple stock — then it tanked 15%
Business Insider
Mutual fund Fidelity added 7 million shares during the quarter ended in September, Reuters reported, bringing its total holdings to about 111 million shares. Philippe Laffont's Coatue Management raised its Apple exposure by a massive 938% to 884,321 ...

and more »

Barron's

Betting on Stock Size Isn't Working the Way It Once Did
Barron's
This is echoed by Todd Rosenbluth, senior director of ETF and mutual fund research at CFRA, “Investors need to have both [large-caps and small-caps] in their portfolio, instead of having just one and sticking with it,” he explains. One way to avoid ...


After Sour October, Fund Managers Gird For More Volatility, Trim Stocks
Investor's Business Daily
Ouch! That summarizes the shrinking performance by the stock market and U.S. diversified stock mutual funds in October. The stock market forecast? Fearing volatility ahead, money managers and strategists are flashing yellow warning signs about the ...

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