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Morning Commentary

Special Report: Five Investing Approaches You Must Know

By Charles Payne, CEO & Principal Analyst
9/6/2017 10:00 AM

Hello, my name is Charles V. Payne, founder of Wall Street Strategies.  I began my career on Wall Street back in 1985 at E.F. Hutton.  Over the years, I’ve watched many individual investors come into the market and just as many eventually leave or hand over the effort to a professional.

The self-directed investing movement is the biggest threat ever to Wall Street, which has clouded investing with mystery and fear that only insiders could navigate.   Each wave that saw Main Street start to make their own decisions was crushed with a crash that sent many back to their advisors. 

Now, the market is on fire again; although, gains are uneven and overhyped (taking out the top ten performers in the market puts year to date gains closer to 4% than 10%) and individuals are taking money out of funds and away from managers.

I don’t think a crash is coming, but volatility will pick up, and in my opinion, stock selection will be the best way to navigate and capitalize.

You’ve heard that diversification was the best way to invest in the market, and this is true, but the meaning of diversification isn’t always the same.  In fact, in recent years, it has become more of a marketing tool than investment strategy.

I want you to learn about diversification based on investment themes.

Investment Themes

At any given time, there is a dominant investment theme that seems to capture everyone’s attention.  The main reason for this is when something is working in the market, it tends to work for a very long time.  Most individual investors don’t bother to learn why these trends are working, they just go with the flow while more “experts” don’t bother to learn, either, as they are simply chasing performance.

The fact of the matter is almost everyone is chasing performance these days rather than making investments based on philosophy and practicality that involves risk calculations and stated goals.  Therefore, so many funds with different objectives still end up owning the same stocks.  Yes, you own a lot of funds with different news like New Horizon or World Vision or maybe named after a character in Greek mythology, but you are not diversified.

Now that the S&P 500 has extended the rally to the second longest on record, every investor should consider diversification.  But I’m not talking about the kind of diversification pitched by Wall Street but never put into practice with their own money (see quarterly earnings reports from big Wall Street firms and see how underlying share price moves based on short term trading gains – not buy and hold).

Diversity of Approach

The kind of diversification I’m talking about and what investors need to begin to understand is diversification of approach.   Yes, the best strategy to mitigate risk and outperform the market isn’t to own the best semiconductor stock and the worst semiconductor stock at the same time for a semblance of balance – that mutual fund trick has revealed itself to be a bust. 

Your Blueprint for the next 16 Months Includes Five Approaches Investors Must Know and Embrace:

Timing is of the essence as these ideas have already begun to rally - so take advantage right now!

Click here to read more in this free 10 page report which includes in-depth explanations of each of the five investing approaches, individual stocks to start your portfolio and how to play them. 

Need a password? Click here to register and get your free report. 

For assistance please call 800-286-1145, option 5. 

 


 

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