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
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
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 (
), ConocoPhillips (
), and Dupont (
). 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 (
), Abbott Labs (
), and Altera Corp (
Let's continue this week's series on investing strategy
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
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
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 Strategy #15 - "You only need to be correct on one or
two themes per year and overweight them to have acceptable
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
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
"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