Best of the Week
Most Popular
1. Will Gold Price Breakout? 3 Things to Watch… - Jordan_Roy_Byrne
2.China Invades Saudi Oil Realm: PetroDollar Kill - Jim_Willie_CB
3.Bitcoin Price Trend Forecast, Paypal FUD Fake Cryptocurrency Warning - Nadeem_Walayat
4.The Stock Market Trend is Your Friend ’til the Very End - Rambus_Chartology
5.This Isn’t Your Grandfather’s (1960s) Inflation Scare - F_F_Wiley
6.GDX Gold Mining Stocks Fundamentals - Zeal_LLC
7.US Housing Real Estate Market and Banking Pressures Are Building - Chris_Vermeulen
8.Return of Stock Market Volatility Amidst Political Chaos and Uncertain Economy - Buildadv
9.Can Bitcoin Price Rally Continue After Paypal Fake FUD Attack? - Nadeem_Walayat
10.Warning Economic Implosion on the Horizon - Chris_Vermeulen
Last 7 days
Is War "Hell" for the Stock Market? - 19th Apr 18
Palladium Bullion Surges 17% In 9 Days On Russian Supply Concerns - 19th Apr 18
Breadth Study Suggests that Stock Market Bottom is Already In - 19th Apr 18
Allegory Regarding Investment Decisions Made On Basis Of Government’s Income Statement, Balance Sheet - 19th Apr 18
Gold – A Unique Repeat of the 2007 and How to Profit - 19th Apr 18
Abbeydale Park Rise Cherry Tree's in Blossom - Sheffield Street Tree Protests - 19th Apr 18
The Stock Market “Turn of the Month Effect” Exists in 11 of 11 Countries - 18th Apr 18
Winter is Coming - Coming Storms Will Bring Out the Best and Worst in Humanity - 18th Apr 18
What Does it Take to Create Living Wage Jobs? - 18th Apr 18
Gold and Silver Buy Signals - 18th Apr 18
WINTER IS COMING - The Ongoing Fourth Turning Crisis Part2 - 18th Apr 18
A Stock Market Rally on Low Volume is NOT Bearish - 17th Apr 18
Three Gold Charts, One Big Gold Stocks Opportunity - 17th Apr 18
Crude Oil Price As Bullish as it Seems? - 17th Apr 18
A Good Time to Buy Facebook? - 17th Apr 18
THE Financial Crisis Acronym of 2008 is Sounding Another Alarm - 16th Apr 18
Bombs, Missiles and War – What to Expect Next from the Stock Market - 16th Apr 18
Global Debt Bubble Hits New All Time High – One Quadrillion Reasons To Buy Gold - 16th Apr 18
Will Bitcoin Ever Recover? - 16th Apr 18
Stock Market Futures Bounce, But Stopped at Trendline - 16th Apr 18
How To Profit As Oil Prices Explode - 16th Apr 18
Junior Mining Stocks are Close to Breaking Downtrend - 16th Apr 18
Look Inside a Caravan at UK Holiday Park for Summer 2018 - Hoseasons Cayton Bay Sea Side - 16th Apr 18
Stock Market More Weakness? How Much? - 15th Apr 18
Time for the Gold Bulls to Show their Mettle - 15th Apr 18
Trading Markets Amid Sound of Wars - 15th Apr 18
Sugar Commodity Buying Levels Analysis - 14th Apr 18
The Oil Trade May Be Coming Alive - 14th Apr 18
Big Cap US Stocks Fundamentals - 13th Apr 18
Jaguar Land Rover Cuts 1000 Jobs on Diesel Sales Slump, Long-term Discovery Sport Review - 13th Apr 18
Stock Market SPX May Tangle with the 50-day MA - 13th Apr 18
Longtanding Chinese War: Intrigue & Betrayal - 13th Apr 18
How I Own My Gold - 13th Apr 18
ISupply Energy Consumer Warning - Never Put Your Account Into Credit! - 13th Apr 18
SPX Resistance May Prompt A Massive Short Squeeze - 12th Apr 18
Stock Market High Volatility is Not Consistently Bearish for Stocks - 12th Apr 18

Market Oracle FREE Newsletter

Trading Lessons

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

© 2005-2018 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

6 Critical Money Making Rules