Archive for December, 2009

Continuing with my favorite resolutions this week – ones that work in all markets – here is my last, number four. »

Continuing with my favorite resolutions this week – ones that work in all markets – here is number three. »

Continuing with my favorite resolutions this week – ones that work in all markets – here is number two. »

New Year’s resolutions are typically borne from a combination of desire and guilt. For investing resolutions, people tend to look back at recent market trends. Bull markets see investors vowing to take more risk – bear markets, less. Neither, though is the right approach. Reactionary steps are neither resolutions nor sound investing. During this... »

As is typical when a growth trend evolves out of dark times, the media simply cannot get in sync. Because negative news titillates – and sells – it’s so hard to give it up. Today’s good news reports regularly have concerns and warnings tacked onto them. For stock investors, that means opportunity. Here is... »

Last Friday, in “Happy Holidays! – Now, Get To Work Preparing for Investment Opportunities!” I mentioned that the final weeks of December typically see a slowdown in trading volume – especially the last week of the year between Christmas and New Year’s. I also mentioned how it can be hard for a trend to... »

As we hear frequently, consumer spending is key because it is about two-thirds of the economy. The main question has been how long consumer spending will be weak. The worry is that today’s reduced level is the new normal. This fear is seemingly reinforced by surveys in which the pointed question is asked: “Are... »

Some interesting indicators are being released the last two weeks of December – our period of special opportunity. Housing has the big three: existing home sales, new home sales and S&P Case-Shiller home prices. All have been improving in spite of negative articles about the current housing market and its outlook. Here is where... »

One mid-December I was talking to an equity manager(*), telling him about my upcoming holiday trip to the relatives. When I asked about his plans, he said he would be in the office, working. The reason? He had found the last half of December, especially the days between Christmas and New Year’s, often provided... »

The list of contrarian indicators supporting the buying of US common stocks has become lengthy and weighty. Articles about stock risks and investor worries keep getting added to the pile. Like people postponing buying a new car, the potential demand continues to grow. All it takes is a spark to set it off. In... »

Today, the Fed announces its interest rate intentions. We will see if it continues to use its catch phrase: “… economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period,” leaving the federal funds rate unchanged. I want to focus on that phrase: “exceptionally low.” In... »

In September there was talk of the credit rating agencies fading away. Credit ratings were going to be removed from investment guidelines, bond issuers would not bother getting their securities rated and Congress would adopt financial controls to diminish the raters’ independence. Well, the credit raters are back, and they’re showing the kind of... »

As a final piece on contrarian investing, I thought some of my own personal experiences would help. I have selected a diverse list to show how there are many ways to gain from contrarian investing. I put in extra details, so you can get a better sense of both the environment at the time... »

The last two days, I have discussed the concept and importance of contrarian investing. I thought some real life examples would help provide understanding of how it is applied. For today, I have selected four investment managers with whom I have worked that successfully used a contrarian approach. »

Contrarian investing is so important that I want to discuss it further. The concept is challenging, and most investors do not apply it well, if at all. The potential rewards are considerable. Practicing contrarian investing can be financially beneficial and help prevent mental anguish. »