Market Wrap-Up for Jan.26 (ROK, BA, COP, ABT, DD, more)

Shutterstock photo

I'm sure most people could have written the script we heard last night on what the U.S. needs to do to turn things around. The problems are obvious (lack of jobs), but the solutions are not. Unfortunately the problem with politicians is that most of the time, they recant the issues we already know - get the standard applause when they say things need to change - but rarely offer up any solutions.

I find it fairly comical how the mood shifts occur and all of a sudden what the President is saying is good for the market. I've got news for everybody: the market already expected what the President was going to talk about. Folks, we have gone from Dow 6600 to Dow 12,000 in a matter of 20 months. What, you didn't think the President would get business-friendly? I have never met a politician that hasn't changed his/her stripes to get on the right side of the track when their political career is on the line.

If you toughed out the bear market by just putting capital into names that were still on our recommended list at the time, your returns would be unbelievable right now. Despite the recent rally, we are still looking for more buying opportunities going forward. The job of putting capital to work never stops and neither does our job in finding the best dividend stocks for your investment portfolio. I remember my baseball coach yelling at one of the kids at our team that loved to get on base by just watching pitches and walking. If you don't swing the bat, you'll never know how special a player you can become, and that holds true for investors too! Sitting in cash is the equivalent of just taking walks. Don't worry about getting an uptick the minute you buy shares, or waiting for that magical perfect entry point. Just get back in the game already!

Speaking of swinging the bat, we added two new names to our recommended list today (there have been a total of six new names added this week). Be sure to check the link below for the names in case you didn't read the e-mail alert we sent out earlier.

The markets briefly touched over Dow 12K on the back of the State of the Union euphoria as well as the Federal Reserve deciding to leave rates once again (certainly not a surprise to many). Winners on the earnings side today included Rockwell Automation ( ROK ), ConocoPhillips ( COP ), and Dupont ( DD ). ROK is a name we added to our aggressive list early last month in the high $60′s and the stock just broke above $80 today. It is certainly nice to catch a quick move like that, but we never try and bet on big short-term movements. As for earnings movers to the downside today, sellers were active in names like Boeing ( BA ), Abbott Labs ( ABT ), and Altera Corp ( ALTR ).

Let's continue this week's series on investing strategy anecdotes.

Investing Strategy #11 - "Let your setups come to you - do not chase. There will always be another day, another setup."
While the setup term applies a bit more to trading, the "don't chase" part is the more important focus for investors. That's why I don't like our subscribers buying new recommendations we make the minute they get their email alert about the upgrades. Lots of times, investors want to jump in on any news headline that comes out, which usually means you're buying emotion - which is never a good idea.

Investing Strategy #12 - "Stay the course until evidence proves the other way around."
If you have a sell discipline and you stick to it, you will avoid taking any major losses that would put a big dent in your plans to build wealth. The stocks that have done well for you will likely continue to do so, unless outside technological, economic, or cultural factors begin working against them.

Investing Strategy #13 - "The importance of having a system and sticking to it especially when your emotions are working against you."
It pays to have a game plan on what you want to be buying with your new monies each month, even if the market is going through a rocky period. There are almost always a place you can get your money in the markets to get working for you.

Investing Strategy #14 - "Inaction due to fear of the unknown is the worst thing one can do."
This goes back to the above and what I said about swinging the bat. Fear is the biggest factor that holds investors back. Fear of losing, fear having an opinion others may not like, fear the stock you buy may go down, etc. Don't let fear stop you from taking advantage of every opportunity life can give you, beyond just investing.

Investing Strategy #15 - "You only need to be correct on one or two themes per year and overweight them to have acceptable performance."
This is certainly possible, but I tend to lean toward capping any one stock at no more than 10% of any particular portfolio. You can certainly let a winner run a bit more than that, but you can also take some of those winnings and likely find another name or two to consider buying. Often times, there could be stocks that drift down to attractive levels where the dividend yield is too juicy to ignore.

Check out the first 10 investing strategy anecdotes put up in Monday and Tuesday's daily newsletter and be sure to read more of these as the week goes on.

Don't forget to check out our library of "Learn to Be Rich" articles which give you snippets about personal finance matters you should educate yourself about. And as always, check out our industry-leading "Best Dividend Stocks" List for the top dividend names to put money into right now.

Thanks for reading, and I'll see you tomorrow!

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Created by

This article appears in: Investing , Stocks
Referenced Symbols: ABT , ALTR , BA , COP , DD

More from

Follow on:

Research Brokers before you trade

Want to trade FX?

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by