For Great Investment Returns, Follow the Greats

Many professional investors attract followers. And rightly so. Successful fund managers have to report their holdings to the SEC. That means their activity is updated every 90 days. So it’s easy to follow along someone who’s already shown the capacity to make a market-beating return, no matter what the market condition. And in a bear market, those who follow along can potentially get into a great company at an even better price. Right now, investors are following an investment in Taiwan Semiconductor ...
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Buy Defensive Companies Growing Sales Now

At the end of the day, companies exist to sell a product or service. When times are tough, some goods are seen as luxuries. But many items are necessities. That’s why investors tend to pile into defensive stocks like consumer goods companies during a bear market. A bear market also helps to bring down valuations across the board. That makes defensive stocks, typically priced fairly high relative to their growth prospects, a much better buy ahead of a market turnaround. For example, ...
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In Bear Markets, Follow Companies with Cash to Burn

Many companies get into trouble overleveraging while times are good. They take on too much debt. That becomes a problem with things slow, and the costs to finance that debt become too much to bear. In contrast, a number of companies have strong balance sheets. Even companies with some debt, but substantial cash, are in a great place right now. They can potentially make a great acquisition at a great price, or find ways to return that cash to shareholders. One company ...
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Consider This Retail Player Ahead of the Holidays

Economists are predicting a gloomy holiday season. Real spending will likely be down thanks to slow economic growth and high inflation this year… not to mention the impact of supply chains. But consumers still remain robust, so it’s likely that retailers may be oversold going into the holidays. Investors who buy today can grab a reasonable value in any of the big-name big-box stores here. And if things go better than expected, they’ll be well positioned for some quick profits. Among the ...
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Buy the Brand When It’s Down and Out

Earnings season in a bear market can turn even a blue-chip stock into what looks like a penny stock with big moves up or down – usually down. But patient investors who buy an industry-leading company during a down market can get a great value. Patient investors can earn a great return buying values and waiting for the market to recover. And, as that happens, traders tend to be more forgiving in future quarters for a company during bull markets. The recent ...
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Profit With Winning Companies Providing “Slow and Steady” Returns

Many investors have made money by buying the dip and being greedy while others are fearful. In today’s fearful markets, there are plenty of bargains. But some companies may continue to struggle right now, leading their share price lower. Buying companies who have seen their stock price increase this year may be a better way to go. Those companies that can deliver now can likely continue higher no matter what market conditions develop. Playing to that momentum could fare well. For instance, ...
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Stick With Companies That Can Build Their Customer Base in Poor Markets

Some companies are cyclical, seeing customers appear in good times and disappear in bad. Those customers can be individuals, or entities like corporations or governments. Companies that are building out corporate or government contracts right now may not fully book that revenue for some time. But when they do, if markets are looking up, they’ll be rewarded for solid long-term decisions being made today. That’s why investors should find companies ramping up their customer base in the current challenging markets. One company ...
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Companies that Can Smartly Cut Expenses Can Deliver Big Profits

During a boom, companies tend to need more employees or services immediately. So they pay market rates… and often end up overbuilding when the boom comes to an end. Many companies have already started laying off employees, or have held off on hiring new ones. If a company can find a way to do the same level of business (or more) with fewer employees, those lower expenses can lead to a bigger profit. That’s true even if the underlying business isn’t ...
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