Louis' Blog Archive
June 6, 2020
Let’s start with the bad news first: The “stay at home” orders and the coronavirus officially triggered a recession. For the second quarter GDP, economists expect a 27.7% annual decline. And, looking forward, some analysts are predicting that the effects of the coronavirus recession could affect the economy for 10 years. The Congressional Budget office recently cut their 2020-2030 outlook for U.S. economic output by $7.9 trillion dollars or 3% of GDP.
June 5, 2020
It’s been more than two months since stocks hit a bottom (on March 23). If I’d have asked you which sectors would perform best afterwards, I bet few of you would have guessed marijuana stocks! After all, the group has been down in the dumps for more than a year. Yet the ETFMG Alternative Harvest ETF (MJ) is up roughly 47%. For context, that’s better than technology stocks (+44%) and even health care stocks (+39%); it’s nearly twice the gain in consumer staples over the time period.
June 4, 2020
Investing is a balancing act. Literally. As a growth investor, not only do I need to own the best stocks, but I must also own the right mix of stocks to limit my risk and maximize my profits. Personally, I follow the 60%/30%/10% rule. This means that 60% of my portfolio is allocated to conservative stocks, 30% to moderately aggressive stocks and 10% to aggressive stocks.
June 2, 2020
It’s going to be a long, hot, tense summer. And that includes U.S.-China relations. I’ve been having readers ask me, “Are they going to ban Chinese stocks from listing in America?” The short answer is: No. And I’ll explain further, but first, I’d like to address why folks are wondering this.
June 1, 2020
During these busy times, it pays to stay on top of the latest profit opportunities. And today’s blog post should be a great place to start. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I decided to revise my Portfolio Grader recommendations for 61 big blue chips. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.
May 30, 2020
It’s time to look ahead to June. While I hope that you’re able to get out and about in the warm, fresh air, there are some investing actions to take first. Since the days seem to be crawling by and, somehow, also flying by, let me remind you: We’re coming up on the end of the second quarter.
May 28, 2020
Psychology is responsible for many of our worst blunders – if left unchecked. We’ve talked a bit about psychology in my Accelerated Income Guide, including Recency Bias yesterday and Crowd-Seeking Bias last Sunday. You see, the more you know about the workings of your own mind, the “bugs” inside it, and how they work against our investment performance, the more you can develop strategies to mitigate the negative effects of those bugs.
May 27, 2020
Ever been to a concert where the band came back out for a big encore? I’ll bet you answered “yes.” They practically always do. During the middle of the concert, perhaps the band stuck with songs from the newest album. Ones that you don’t know nearly as well. Then, at some point, the lead singer pulled out an acoustic guitar, the rest of the band disappeared, and half the crowd got up to purchase another $14 stadium beer or margarita.
May 26, 2020
Every week, my virtual “mailbag” fills up with questions about every sector you can imagine. Lately, I’ve been getting plenty of questions like: What do you think about mining stocks? Or oil tankers? How about dividend stocks? Insurance companies? Now, I could be like lots of other stock “experts”: I could go on TV to declare which sector is the hottest one to “Buy, buy, buy!” But I’d have to ignore the facts. And the fact is, for growth investors, every sector offers “Strong Buys”…and “Strong Sells,” too!
May 26, 2020
During these busy times, it pays to stay on top of the latest profit opportunities. And today’s blog post should be a great place to start. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I decided to revise my Portfolio Grader recommendations for 72 big blue chips. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.