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.The rise in technology stocks makes the advance vulnerable to any major bad. Read More
There is a significant amount of evidence that suggests stock market valuations are stretched to the extreme. Even the Fed thinks the market is expensive.Federal Reserve Concerned About Stock Market ValuationOn February 24, 2015, the Federal Reserve issued its semi-annual monetary policy report. In this report regarding the stock. Read More
My Investment Strategy for 2015The 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, which I view as 12 full years of recovery from the technology bubble and financial crisis.With the main stock. Read More
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 current quarterly dividend, payable in early December,. Read More
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 few years and should continue to do so. The position has been a worthy. Read More