Best of the Week
Most Popular
1.The Trump Reset, US Empire's Coming Economic, Cyber and Military War With China (2/2) - Nadeem_Walayat
2.Now Is the Time to Buy Gold - 5th Jan 17 - John Grandits
3.CIA Planning Rogue President Donald Trump Assassination? Elites "Manchurian Candidate" Plan B - Nadeem_Walayat
4.The Trump Reset - Regime Change, Russia the Over Hyped Fake News SuperPower (Part1) - Nadeem_Walayat
5.Most Popular Financial Markets Analysis of 2016 - Stock Market Crash Postponed Again - Nadeem_Walayat
6.No UK House Prices Brexit Crash 2016 Despite London Weakness, Forecast 2017 - Nadeem_Walayat
7.President Trump Understands the NSA, CIA... LIE, America's Intelligence Agencies Crime Syndicate! -Nadeem_Walayat
8.President Donald Trump's 2017 New Year Message, BBC Fake News, Was 2016 a Dream? - Nadeem_Walayat
9.Major Stocks Bear Market Still Looms - Zeal_LLC
10.Biased 2017 Forecasts - Debt, Housing and Stock Market (1/2) - James_Quinn
Last 7 days
Time for Crude Oil Price Drop below $50? - 21st Jan 17
AI and Robotics - We Are All Low-Skilled Workers Now - 21st Jan 17
The Trump RESET Starts on US Presidential Inauguration Day 2017 - What to Expect - 20th Jan 17
Will the CIA Assassinate Rogue President Donald Trump Like JFK? - 19th Jan 17
Bonds, Dollar, Stocks, Gold, Silver Major Markets at Turning Points - 19th Jan 17
Populism; the Danger? What About Debt? - 19th Jan 17
Gold Price 50-DMA Breakout - 19th Jan 17
Turkey, 'Axis of Gold' and End of US Dollar Hegemony - 19th Jan 17
The Most Important Market Chart on the Planet - 19th Jan 17
Trump Deficits Will Be Huge - 19th Jan 17
Stock Market Trading Patience Pays Off with CHK Using Momentum Reversals - 19th Jan 17
Gold - How to "Buy Low and Sell High" Like a Pro - 19th Jan 17
State of the Global Stock, Financial and Commodity Markets Report 2017 - 19th Jan 17
The Hunt for Russia's Next Enemy - 18th Jan 17
Returning Gold Bulls - 18th Jan 17
Biotech Breakthrough Could Create A $11.4 Trillion Opportunity - 18th Jan 17
Bitcoin and Gold - Outlook, Volatility and Safe Haven Diversification - 17th Jan 17
Stock Market Uptrend on Borrowed Time - 17th Jan 17
The One Stock to Retire On - 17th Jan 17
Trump anti-Communist Counter Revolution - 17th Jan 17
US Stock Market Update as the Trump Inauguration Approaches - 17th Jan 17
The American Crisis - Common Sense 2017 - 17th Jan 17
Obama Leaves, Hope Arrives, Will Stupid Stay? - 17th Jan 17
Damage Inflicted by Precious Metals Manipulation Is in the “Multi Billions” - Keith Neumeyer - 17th Jan 17
Gold Price Forecast 2017 Update - Video - 17th Jan 17
The Story of the U.S. Regime Change Plan in the Philippines - 16th Jan 17
Gold Price 2017 Trending Towards $1375 as Forecast - 16th Jan 17
'Deep State' CIA Director States We are Not NAZI's, Warns Trump Does Not Understand Russian Threat - 15th Jan 17
UK House Prices Forecast 2017 - Crash or Bull Market? - Video - 15th Jan 17
SPX Stocks Bull Market Update - 14th Jan 17
President Trump vs the Deep State that Hides in Plain Sight - 14th Jan 17
The Impact of Sir Alex Ferguson's Retirement on Man United's Share Price - 14th Jan 17
What Can Stock Market Tell You About Politics? - 13th Jan 17
Big Gold Buying Coming 2017 - 13th Jan 17
A Bullish Case for Gold 2017 - 13th Jan 17
Will Stocks Bull Market Continue to Charge or is it Time to Sell the News - 13th Jan 17
Gold and Silver Off To Shining Start to 2017 - 13th Jan 17
Gold’s Fundamental Outlook for 2017 - 13th Jan 17
Is trading stocks and shares just as luck-based as roulette? - 13th Jan 17
Trump CIA Like Nazi Germany - Fake MI6 Intelligence leaked to Fake News Mainstream Media - 13th Jan 17
USD in Decline. SPX and TNX May Follow - 12th Jan 17
CIA War On Trump - Leaks Fake MI6 Intelligence to Fake News Broadcast Media - 12th Jan 17

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

State of Global Markets 2017 - Report

My Best Investment Advice for 2014

InvestorEducation / Investing 2014 Dec 21, 2013 - 07:47 PM GMT

By: Investment_U

InvestorEducation

Alexander Green writes: On Monday, we covered some of the worst investment ideas in Forbes‘ 2014 Investment Guide. Among these were forming a family limited partnership, plunking for an annuity, ignoring high mutual fund expenses, buying (overpriced) farmland, holding off on Treasury Inflation-Protected Securities (TIPS), and increasing your stock allocation after retirement (regardless of what it is).


Mixed in with these clunkers, however, were a number of sensible pieces of advice that might well lead to higher returns in 2014. Here are the best:

1.Look for undiscovered stocks with market caps between $1 billion and $10 billion. Mid-cap stocks are the sweet spot in the market – and yet so few investors seem to realize it. Small-cap stocks are risky and often get run out of business by larger competitors with huge advantages of scale. Large-cap stocks are victims of their own success; they become too big to compound their earnings at the same rate they did when they were fillies.Mid-size companies have already cleared the important early hurdles and are often more adaptable than the stodgy big fish.

2.Diversify globally to boost your portfolio’s risk-adjusted performance. Even in our highly globalized economy, the majority of investors still don’t understand that diversifying into foreign markets actually reducesyour portfolio risk while increasing returns. Why? Because international markets are not perfectly correlated with our domestic markets. In technical terms, they often zig when ours zags.A good example is Japan. It has posted a negative return for the past 24 years. (Now that’s a secular bear market.) However, stocks there are cheap and beginning to climb again. Adding some Japanese stocks to your portfolio – like Nidec Corp. (NYSE: NJ) and Sony Corp. (NYSE: SNE) – could prove a very smart move in 2014.

3.When company insiders buy, you should too. If you don’t think the smart money on Wall Street is watching what corporate officers and directors are doing with their own shares, you don’t know the smart money.Insiders have access to all sorts of material, nonpublic information about their company’s business prospects. They know the direction of sales since the last quarterly report; new products and services in development; the status of pending litigation; whether the company has gained or lost any major customers; and so on.This gives them an unfair advantage when they go into the market to trade. So they must file a Form 4 with the SEC detailing how many shares they bought or sold at what price and on what date. You should know what the insiders are doing – especially when they are buying – and follow their lead.

4.Don’t try to reinvent the wheel. Instead, intelligently and efficiently apply what is already well known. This small gem from Gary Shilling is advice that should be heeded every year.Novice investors (and plenty of those who should know better) have a strong tendency to gravitate toward systems and styles of investing that are new and hot. That can work for a while but has a tendency to end badly.Nor does it make sense to follow some pundit’s well-articulated forecasts about the economy or the stock market. I can’t say it often enough: Successful investing is not about following the right predictions. It’s about following the right principles.

And we will continue to discuss the best and most important investing principles here in 2014. Enjoy the holidays!

Good investing,

Source: http://www.investmentu.com/2013/December/forbes-best-investment-advice-2014.html

http://www.investmentu.com

Copyright © 1999 - 2013 by The Oxford Club, L.L.C All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Investment U, Attn: Member Services , 105 West Monument Street, Baltimore, MD 21201 Email: CustomerService@InvestmentU.com

Disclaimer: Investment U Disclaimer: Nothing published by Investment U should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Investment U should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Investment U Archive

© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife