Best of the Week
Most Popular
1.Putin’s World: Why Russia’s Showdown with the West Will Worsen - John_Mauldin
2. Stocks Bull Market Grinds Bears into Dust, Is Santa Rally Sustainable? - Nadeem_Walayat
3. Gold and Silver 2015 Trend Forecasts, Prices to Go BOOM - Austin_Galt
4.Gold Price Golden Bottom? - Toby_Connor
5.Gold Price and Miners Soar on Huge Volume - P_Radomski_CFA
6.Stock Market and the Jaws of Life or Death? - Rambus_Chartology
7.Gold Price 2015 - EWI
8.Manipulated Stock Market Short Squeezes to Another All Time High - The China Syndrome - Nadeem_Walayat
9.Gold, Silver, Crude and S&P Ending Wedge Patterns - DeviantInvestor
10.Is the Gold And Silver Golden Rule Broken? - Michael_Noonan
Last 5 days
TrueShopping.co.uk Real Customer Experience Review - Online Shopping Lessons - 26th Nov 14
Is There A New Global Consensus About Cheating Investors To Reboot Employment? - 26th Nov 14
EUR/USD – Currency Bulls Don’t Give Up - 26th Nov 14
Swiss Gold Referendum A Golden Opportunity for Switzerland - 25th Nov 14
Silver: What COT Analysis Tells Us - 25th Nov 14
Stock Market Big, Bold and Ugly - 25th Nov 14
U.S. Dollar Near Top? Gold and Silver Trading, Platinum Breakout Invalidation - 25th Nov 14
Buy Fear - Easily Pick Up Profits on Stock Market Dips - 25th Nov 14
The Islamic State Reshapes the Middle East - 25th Nov 14
Gold Price Forecast 2015 - 25th Nov 14
The Swiss Referendum On Gold: What’s Missing From The Debate - 25th Nov 14
Clash of Generations - Why Millennials Still Live at Home; Not Jobs, Student Debt, or Housing - 25th Nov 14
Stock Market Reminiscent of Pompeii - 25th Nov 14
Once Upon A Time There Were Philosopher Kings - 24th Nov 14
The 2014 Crude Oil Price Crash Explained - 24th Nov 14
China Stock Investing - Follow the Money! - 24th Nov 14
122 Tonnes of Gold Secretly Repatriated to Netherlands - 24th Nov 14
What Causes the U.S. Dollar to Move? - 24th Nov 14
Stock Market Indexes New Highs - Will Uptrend Extend Even Further? - 24th Nov 14
All Hail the King U.S. Dollar - Trend Forecast - 24th Nov 14
Where Is China Economy On The Map Exactly? - 24th Nov 14
Most of The World Economies Panic - Is The US Next? - 24th Nov 14
Stock Market Exhaustion Gap? - 24th Nov 14
Gold Golden Gains Come After The Pain - 24th Nov 14
Crude Oil and Stock Market Setting The Stage For The Next Recession - 23rd Nov 14
This Publicly-Owned Bank Is Outperforming Wall Street - 23rd Nov 14
Who’s Ready For $30 Crude Oil Price? - 23rd Nov 14
Strategic, Methodological and Developmental Importance of Knowledge Consumption - 23rd Nov 14
Manipulated Stock Market Short Squeezes to Another All Time High - The China Syndrome - 23rd Nov 14
Gold Price 2015 - 22nd Nov 14
Stock Market Medium Term Top? - 22nd Nov 14
Is the Gold And Silver Golden Rule Broken? - 22nd Nov 14
Malaysia's Subsidy and Budget Deficit Conundrum - 22nd Nov 14
Investors Hated Gold at Precisely the Wrong Time: What About Now? - 22nd Nov 14
Gold and GLD ETF Selloff - 22nd Nov 14
Currency Wars, the Ruble and Keynes - 21st Nov 14
Stock Market Investor Sentiment in The Balance - 21st Nov 14
Two Biotech Stocks Set to Double on One Powerful Catalyst - 21st Nov 14
Swiss Gold Poll Likely Tighter Than Polls Suggest - 21st Nov 14
Gold's Volatility and Other Things to Watch - 21st Nov 14
Australia Stock Market and AUD Dollar Analysis (ASX200 and AUDUSD) - 21st Nov 14
New Algae Research May Have Uncovered an “Energy Forest” Under the Sea - 21st Nov 14
The Cultural and Political Consequences of Fiat Money - 20th Nov 14
United States Social Crisis - No One Told You When to Run, You Missed the Starting Gun! - 20th Nov 14
Euro-Zone Tooth Fairy Economics, Spain Needs to leave the Euro - 20th Nov 14
Ebola Threat Remains a Risk - New Deaths in Nebraska and New York - 20th Nov 14
Stock Market and the Jaws of Life or Death? - 20th Nov 14
Putin’s World: Why Russia’s Showdown with the West Will Worsen - 20th Nov 14
Making Money While The World Burns - 20th Nov 14
Why This "Quiet Zone" Is Now Tech Stocks Biggest Profit Sector - 20th Nov 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Gold Report 2015

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

© 2005-2014 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

Free Report - Financial Markets 2014