InvestingDaily.com

Account Information

  • My Account

    Manage all your subscriptions, update your address, email preferences and change your password.

  • Help Center

    Get answers to common service questions, ask the analyst or contact our customer service department.

  • My Stock Talk Profile

    Update your stock talk name and/or picture.



Close
FEATURED STRATEGY

These contrarian stocks thrive in good markets and bad

These contrarian stocks thrive in good markets and badIn my new profit guide, I reveal a group of super-safe stocks that don’t behave like regular stocks during market downturns. In fact, these rock-solid beauties historically SKYROCKET and THRIVE during the worst of times. During the last three market busts, stocks in this contrarian sector soared 42%… 135%… and even 200%. Do yourself a favor. Check out my free profit guide today.

 

Climbing The Wall of Worry: How to Keep From Falling

By John Persinos on May 3, 2017

When President Trump last Sunday actually said on CBS-TV’s Face The Nation that the U.S. might go to war with nuclear-armed North Korea (“We’ll see,” said the Commander-in-Chief), the markets took the apocalyptic comment in stride.

Welcome to the normalization of the unthinkable.

As stocks continue to march higher despite today’s geopolitical and economic dangers, they’re proving an old Wall Street adage: bull markets climb walls of worry. The tech-heavy Nasdaq has been particularly impressive, closing at a record high this week.

But to keep from falling off that wall, you must take precautions. Below, our in-house investment gurus offer sober assessments of the latest risks, as well as proactive advice to protect your portfolio (and still make money).

Solid to the core…

Jim Pearce, chief investment strategist of our flagship publication Personal Finance, casts a wary eye at the so-called Trump Bump and also throws some shade on the sunny assumptions of today’s bulls:

“Except for 2017’s first two trading days, all of the gains in the Standard & Poor’s 500-stock index this year occurred in the first six weeks of the Trump presidency.

Since then, stocks have slumped while investors wait for proof that President Trump’s pro-growth agenda isn’t just wishful thinking…

A recent Federal Reserve report estimates annual U.S. economic growth at less than 2% over the next 10 years. Given this sobering statistic, stock valuations based on the expectation that economic growth will return to its former glorious heights seem like pie in the sky.”

By almost every valuation yardstick, the stock market is overbought. Other concerns should give you pause as well. Since 1961, recoveries on average have lasted about eight years — roughly the length of the Obama recovery. Many analysts are now calling for a correction, maybe even followed by a bear market.

Jim advises you to identify a group of “core holdings” that can function as your portfolio’s backbone. To qualify, the investment must be compatible with your long-term wealth building strategy as well as your tolerance for risk. One of the worst things you can do, Jim says, is pick stocks at random without a coherent plan.

Profit catalysts and bargain hunting…

Linda McDonough, chief investment strategist of Profit Catalyst Alert, underscores the proactive steps at your disposal:

“The good news is that retail investors, just like hedge funds, can find ways to hedge in the market. Hedge funds originally were created to do just this; hedge positions. This strategy meant lower-than-market returns with much less volatility.”

Linda’s strategy for “growth with safety” is to look for stocks that are positioned to exploit secular trends. She says one of the surest paths to market-beating gains is to find companies that introduce game-changing technologies, products or ways of doing business.

Linda continually searches the business landscape to pinpoint profit catalysts that can propel a company’s earnings. These catalysts can be a corporate merger, partnership, product, or regulatory green light… anything new that promises to transform the status quo.

Ari Charney, chief investment strategist of Utility Forecaster, advises you to keep your powder dry for the inevitable bargains to come:

“In any given year, a sector can suffer one or more corrections, and that’s when we pounce. Not only do such corrections allow us to pick up solid stocks at more reasonable prices, they also give us an opportunity to lock in higher yields that are leveraged to future dividend growth.”

The market’s mixed mood of optimism tempered by fear could break either way in coming weeks. Regardless, the insurgent nature of the Donald Trump administration ensures daily uncertainty for the duration of his regime. Focus on the fundamentals, of which there will be plenty to scrutinize.

Calibrate your allocations…

In the days ahead, crucial data that gauges U.S. economic strength will indicate whether the market has sufficient momentum to continue climbing that wall of worry, or whether it’s likely to succumb to global anxieties.

The next few days are particularly active. The noteworthy reports on the docket ahead include:

ADP Employment Report, Gallup U.S. Job Creation Index, PMI Services Index, ISM Non-Manufacturing Index (Wednesday, May 3); Chain Store Sales, Jobless Claims, Bloomberg Consumer Comfort Index, Factory Orders (Thursday, May 4); Employment Situation and Consumer Credit (Friday, May 5).

Investors will be looking for signs that the recovery isn’t sputtering. Last week, the government reported that real U.S. gross domestic product increased at a paltry annual rate of 0.7% in the first quarter of 2017. In the meantime, heed the current PF allocations recently set by Jim Pearce, who also serves as director of portfolio strategy for Investing Daily. As pictured here in the pie chart, they are 10% bonds, 25% cash, 30% hedges, and 35% stocks.

Consider taking profits from your biggest growth stock gainers; maintain exposure to precious metals (gold and/or silver) as part of your hedges; and use “stop loss” orders. Some of these steps may seem basic, but the fact is, even veteran investors tend to forget them. Don’t fall off the mountain.

Got any questions or comments? Drop me a line: mailbag@investingdaily.com — John Persinos

Jim Fink throws down the gauntlet…

“If I don’t deliver 24 triple-digit winners in the next year… I’ll cut you a check for $1,950.”

Jim Fink first launched his trading service Velocity Trader by making that outrageous challenge and he has already followed through. In less than a year, Jim racked up twenty-four triple-digit winners, with more than thirty double-digit winners thrown in.

Jim has developed a way to quickly and predictably multiply the gains of regular stocks. By following just a few simple steps, his proprietary trading system allows you to take regular stock movements of 8%, 17%, or 34% and amplify them to generate profits of 100%, 300%, or even 800%.

Jim made himself a millionaire with this system. Now, he wants to share his secrets with you.

Get all the details by clicking here.

 


You might also enjoy…

 

Obscure Tax Law Forces This Company to Pay Out 90% of its Profits

A 50-year-old loophole is forcing one company to pay out $9 of every $10 it makes from ironclad contracts with the U.S. Government.

In fact, over the past seven years, it’s made payments ranging from a few dollars… to tens of thousands of dollars… 30 times. Without a single cut! 

Most folks don’t even know this company exists, but the ones that do are making a mint.

Like Ted B., who’s set to receive a check for $1,096 just a few days from now.

Merrill H., a 58-year-old from New York, has collected over $3,385 so far. 

And retirees Beth and Terry P. have raked in $16,555.

I’ve put together a special report that will give you all the details, including simple instructions on how to get your name on the payout list before the next cutoff date.

You can get your copy here.

Stock Talk — Post a comment Comment Guidelines

Our Stock Talk section is reserved for productive dialogue pertaining to the content and portfolio recommendations of this service. We reserve the right to remove any comments we feel do not benefit other readers. If you have a general investment comment not related to this article, please post to our Stock Talk page. If you have a personal question about your subscription or need technical help, please contact our customer service team. And if you have any success stories to share with our analysts, they’re always happy to hear them. Note that we may use your kind words in our promotional materials. Thank you.

You must be logged in to post to Stock Talk OR create an account.

Create a new Investing Daily account

  • - OR -

* Investing Daily will use any information you provide in a manner consistent with our Privacy Policy. Your email address is used for account verification and will remain private.