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.

Microsoft Expecting Its Strongest Quarter

By Wednesday, November 19, 2014

Microsoft Expecting Its Strongest QuarterOne 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 Dece… Read More

Drop in This Company’s Stock Price Makes It Very Attractive Now

By Wednesday, August 6, 2014

Top Company for Dividend ReinvestmentJohnson & 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 wort… Read More

Simple Wealth-Creating Strategy for Long-Term Investors

By Monday, July 14, 2014

Compounding Strategy Every Investor Should ConsiderAs 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 broker and/or through the company itself if it offers such a program.

D… Read More

How to Put Your Assets to Good Use in a Stalling Market

By Friday, June 20, 2014

How to Profit in a Stalling MarketThe stock market appears to want to go higher, but it’s going to take a push by investors. While we could see the S&P 500 edge higher, I’m not convinced the gains will be that great unless the underlying stock market fundamentals improve.

I am talking about the economic renewal that appears to be stalling. The International Mon… Read More

Fear of Stock Market Declining Almost Non-Existent

By Wednesday, June 4, 2014

Complacency of Investors Near Record LowThere’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 their lowest levels. It worked in 1987, in 2000, and then in 2009—three of the greatest times to buy stock… Read More