Investment Strategy

An investment strategy is a protocol and methodology for allocating funds of a portfolio. This strategy is based on an investor’s risk profile. The more risk the investor is willing to take on, the greater the potential returns—but also the higher the risk of a loss in capital.

There is a whole universe of investment strategies, from the least risky being Treasury bills and government bonds with high credit ratings, to the more risky buying of stocks based on fundamental analysis, technical analysis, or simply buying and holding for the long-term. Some investors also look to stocks with dividends that return a yield over time to mitigate some of the risks of the stock market.

An investor’s investment strategy typically has to adapt over time because capital markets and sentiment change perpetually. In recent years, a buy-and-hold investment strategy has worked well, especially among large-cap, dividend-paying stocks. This strategy should continue to work near-term.


Since our previous visit, the NASDAQ has broken to an all-time 15-year record high, while the S&P 500 also eclipsed its record. While the stock market continues to be characterized by bullish investor sentiment, the vulnerability to the downside remains.…

My Investment Strategy for 2015 The one thing that the bears have going for them is that eventually, they will be proven right. The stock market has risen tremendously over the last few years, breaking out of its previous cycle,…

One company that is consistently seeing its earnings estimates tick higher is Microsoft Corporation (MSFT). The stock has basically doubled since the stock market breakout at the beginning of 2013, and the company has been increasing its dividends significantly. Microsoft’s…

Johnson & Johnson (JNJ), which is one of my favorite long-term stocks for income and dividend-reinvesting investors, just dropped below the $100.00-per-share level and is becoming more attractive each day. This stock has been doing extremely well over the last…

As a strong believer in the wealth-creating effects of large-cap, dividend paying stocks, I’m also an advocate of dividend reinvestment, which is the purchasing of a company’s shares using the cash dividends paid. This can be done commission-free from your…

There’s one long-term investing adage that has shown a great amount of success over the years: buy when everyone is fearful and sell when optimism is over the top. This theory worked extremely well when key stock indices fell to…

There’s some hand-holding required out there in the stock market. We have seen destruction in the momentum biotech and Internet stocks that have corrected by more than 30%. Now we are hearing some analysts on Wall Street saying to jump…

We have Russia annexing Crimea from Ukraine and interest rates set to float higher sometime in early 2015, but the S&P 500 continued to edge up to another record-high on Friday. Federal Reserve Chair Janet Yellen is continuing to pull…

“The trade” was very easy to do not long ago. Anyone with the basic knowledge of how money flows could have done it and profited. Of course, I’m talking about the Federal Reserve “trade.” The investment strategy was straightforward: borrow…

In the first 10 months of this year, the U.S. Mint sold 39.2 million ounces of silver in coins. In the same period last year, the Mint only sold 28.94 million ounces of silver in coins. A general negativity by…

If you are a stock market investor, you’ve probably come to the same realization I have: the stock market is behaving irrationally. These days, the fundamentals don’t really matter. What’s even more frustrating is that when you do talk about…

When we first took a look at Chart Industries, Inc. (GTLS) in April, the stock was trading around $80.00 a share. The natural gas build-out is a very worthy investment theme going forward and equity market portfolios should have some…