No doubt you’ve noticed that hundreds and hundreds of companies are reporting their quarterly earnings this week, with hundreds more to come next week.
These announcements tend to put Wall Street in a rapid-fire mode that results in a “shoot first, ask questions later” scenario.
Of course, it’s only later that you can put all of the pieces together and reconcile them with your larger investing mosaic.
As you sit back and sift through the data, you’ll also notice that even though the stock market is setting new highs, the S&P 500 is up only 7.5% year to date. Even if the stock more»
During the last few weeks, I’ve shared some important pre-trade and post-trade analytical steps that I do for each recommendation in my investment newsletter PowerTrend Profits and for positions in my Thematic Growth Portfolio. If you aren’t doing these, you need to go back and get started by re-reading these two bulletins.
Since those two articles were published, I’ve received more than a few questions about what should be done in between the pre-trade and post-trade analysis.
I thought that was a great question. But before I answer it, let’s consider the difference between a movie and a photograph.
Last week, I shared with you the importance of the postmortem trade analysis. I know it sounded a little strange to you, given that most people think a trade is over when you exit your position and book either a gain or a loss. However, that’s far from the case. Remember that investing is a process, and only by performing this autopsy-like analysis will you understand what went right and why. How can you hope to repeat good behavior and avoid past mistakes if you don’t recognize them?
That’s why this week I want to share with you another part more»
What do Apple (AAPL), Starbucks (SBUX), Ford (F) and General Electric (GE) all have in common?
Their businesses are built on churning out thousands and thousands of products each and every week. To be successful, they have to deliver products that meet or beat consumer expectations time and time again.
What those three companies have in common with most other successful companies — from industrial manufacturing to online retailers like Zappos — is a well-oiled process.
Not to get all “text bookie” on you, but a process is a series of actions or steps taken to achieve a particular end. The same can more»
Time and time again, I am amazed at how the “smart money” and those supposedly in the know continue to misread the economy. I’m not talking about President Obama, who is most likely as out of touch with what is going on in the real world as was President George W. Bush, nor am I am pointing the finger at Congress. Let’s face it — with the now non-stop campaign cycle, most of them have little time to sweat the details of the economy or the needs of their constituents. If you don’t believe that, perhaps you should spend some more»
One of the biggest mistakes I see both institutional and individual investors make is to rely on either one data point or only one data source to make their investing decisions. One of the lessons I learned a long time ago is to look for confirming data points and to let the data “talk to you.” I have seen many, many times when people are looking for data that supports the outcome they want rather than listening to data for what is really happening.
One source of data is the U.S. federal government and its various departments, such as the Bureau more»
We are barreling toward the end of the June quarter, and that means we are nearing the halfway point for the calendar year. I know it’s hard to believe — after all, it feels like we have only recently thawed out from the winter weather and started to see signs that suggest a pick-up in the U.S. economy. Those signs include better manufacturing data, favorable housing data and, of course, a slew of new products, particularly coming out of the technology sector.
Most of those new tech gadgets — tablets, smartphones, gaming consoles and so on — tend to be announced more»
Last week, I shared with you the importance of not only identifying cyclical and structural opportunities, but also the big profit potential to be had by investing in them. Before too long, we will be exiting the first half of 2014 and entering the second half of the year. There are many drivers in the first half of the year, including several holidays, but they pale in comparison to those in the second half of the year. We also have the back-to-school season that kicks off in late July-early August. Before too long comes Thanksgiving and the holiday shopping season. more»