Tracking Insider Trading: How to Pick a Winner in a Down Market
Posted on February 9th, 2009 No commentsTracking Insider Trading: How to Pick a Winner in a Down Market
by Alexander Green
Editor, Insider Alert
Chairman, Investment U
Investment Director, Oxford ClubLast year was a disaster for most stock market investors. The S&P 500 fell 38%, its worst year since 1931.
The worst damage occurred in the fourth quarter. And the first quarter of this year isn’t looking much different.
We’re back within spitting distance of the November 20 low.
Yet I know a number of stock traders who are making good money right now. How? By tracking insider trading… Read the rest of this entry »
Current Stock Prices: Why Trillions of Dollars on the Sidelines Maybe A Good Thing
Posted on February 5th, 2009 No commentsCurrent Stock Prices: Why Trillions of Dollars on the Sidelines Maybe A Good Thing
by Alexander Green
Editor, Insider Alert
Chairman, Investment U
Investment Director, Oxford ClubYou can’t blame most market investors for being nervous…
- The stock market has done a belly flop.
- Real estate keeps tumbling.
- The economy remains weak.
- Jobless claims recently hit a 26-year high.
Investors have pulled tens of billions of dollars out of stocks and plunked it in the bank.
We are optimistic, nonetheless. Why? Because the bad news is already reflected in current stock prices. Read the rest of this entry »
President Barack Obama: The Temperament of a Champion Stock Trader
Posted on January 30th, 2009 No commentsPresident Barack Obama: The Temperament of a Champion Stock Trader
by Alexander Green
Editor, Insider Alert
Chairman, Investment U
Investment Director, Oxford ClubI think President Barack Obama would make an exceptional short-term stock trader.
I’ve never met the man, personally. And I know nothing about his stock portfolio or whether he even has one.
Yet what I’ve seen indicates that he would make a lot of money trading stocks. Why? Because Barack Obama has a world-class temperament. And so do all great traders. Read the rest of this entry »
The Housing Market: Three Strikes Against Buyers
Posted on January 26th, 2009 No commentsThe Housing Market: Three Strikes Against Buyers
by Alexander Green
Editor, Insider Alert
Chairman, Investment U
Investment Director, Oxford ClubWe all know that, within the housing market, home sales are in the tank, foreclosures are up and prices are down from the past few years.
What a wonderful time to be a buyer, right? Don’t believe it.
If you live in the hardest hit areas like Miami, Phoenix, Las Vegas, Sacramento, Orlando or a few others, there are bargains out there for the picking.
But in most towns, the real values are few and far between. The nation’s housing market is completely dysfunctional right now, in my view.
The Gone Fishin’ Portfolio: The Right Way to Invest
Posted on January 22nd, 2009 No commentsThe Gone Fishin’ Portfolio: The Right Way to Invest
by Alexander Green
Editor, Insider Alert
Chairman, Investment U
Investment Director, Oxford ClubAt our Oxford Club Chapter Meeting in Managua last week, I offered members a few suggestions on how they can improve their returns with our recommendations.
The first suggestion was not to cherry-pick one or two stocks. It’s better to diversify widely. This doesn’t just reduce your risk. It also gives you more opportunities to have a big winner. Diversification is an offensive tactic, not just a defensive one.
Another suggestion was to stick with our discipline. Don’t just note that we recommend trailing stops, for example. Use them. Enter the orders with your broker. If you don’t, you’re prone to start rationalizing that your stocks will “bounce back eventually.” (Not always. Ask any Wachovia shareholder.)
Yet another essential component of successful investing is realistic expectations. This is especially true in tough markets like these.
Last week, for instance, I received an e-mail from a member who said he was disappointed that our Gone Fishin’ Portfolio “didn’t work last year.” Read the rest of this entry »
Why These Two Investment Fears Aren’t Genuine Threats
Posted on January 20th, 2009 No commentsWhy These Two Investment Fears Aren’t Genuine Threats
by Alexander Green
Editor, Insider Alert
Chairman, Investment U
Investment Director, Oxford ClubAs I write, I’m here at The Oxford Club chapter meeting at the Intercontinental Hotel in Managua.Â
When we’re not eating tortillas and sipping margaritas, my colleagues and I – along with about 60 Oxford Club members – are surveying the global economy, making assessments about what lies ahead for world stock and bond markets.Â
However, two of the greatest fears voiced here are not genuine threats to your financial well-being, in my view. You’re probably hearing these opinions, too. So let me give you my take on them. Read the rest of this entry »
Convertible Bonds: Income Securities With Positive Equity Exposure
Posted on January 15th, 2009 1 commentConvertible Bonds: Income Securities With Positive Equity Exposure
by Alexander Green
Editor, Insider Alert
Chairman, Investment U
Investment Director, Oxford ClubEditor’s Note: Over a week ago, Alexander Green recommended Oxford Club subscribers take a look at convertible bonds. They represent a way to hold income securities with some positive equity exposure. It fits in perfectly with our asset allocation portfolio, since we recommend 10% in high-yield bonds and 10% in high-grade bonds. We’ve excerpted his article because we feel there isn’t enough being said about these investment vehicles. Take a look…
Stocks are beginning to move again – the Dow rose over 6% last week alone – but many investors are skeptical of how long the rally will last. Already the market has pulled back.
As I describe in the January Communiqué, I believe this will be a good year for stocks despite the economic downturn.
But if you’re feeling a little gun shy after last year’s rollercoaster ride, there is a second-best alternative: convertible bonds.
Convertibles are corporate bonds that can be converted into shares of the issuing company. At the time a convertible is created, the company spells out exactly the number of shares that can be converted, the price at which the conversion can occur and the time frame.
The Recency Bias: Why Your Subconscious Is Wreaking Havoc On Your Investment Portfolio
Posted on January 12th, 2009 5 commentsThe Recency Bias: Why Your Subconscious Is Wreaking Havoc On Your Investment Portfolio
by Alexander Green
Editor, Insider Alert
Chairman, Investment U
Investment Director, Oxford ClubIf you’re like many investors, a subconscious bias is currently wreaking havoc on your investment portfolio.
Recognize this and a whole new world of opportunities will open up to you.
Here’s why…
Psychological studies confirm that we all have biases. Yet we’re generally unaware of them.
When it comes to investing, few of them do more harm than “recency bias.” This is the tendency of investors to extrapolate recent events into the future indefinitely.
The Best Stock Market Buy Signal In 51 Years
Posted on January 5th, 2009 8 commentsThe Best Stock Market Buy Signal In 51 Years
by Alexander Green
Editor, Insider Alert
Chairman, Investment U
Investment Director, Oxford ClubMedia pundits keep reminding us how tough 2009 will be economically. Nevertheless, I predict this will be a good year for the stock market.
How can this be?
The stock market is a leading indicator. It generally falls before consumers and investors realize just how bad the economy is.
It also recovers long before economic activity picks up. Perversely, that means stocks often plummet during good economic times and rally during recessions… or worse.
In the January issue of The Oxford Club Communiqué, for example, I note that:
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