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| | | Friday, July 29, 2016 | Issue #2856 | |
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MEDICAL MIRACLE STOCK COULD RISE 600%
 There's a shocking medical video going around...
When you see it, you'll never forget where you were and what you were doing.
It's about a company that will soon rise an extraordinary 600% over the next few years... and rocket exponentially as it grows revenue 1,750% to 3,900%...
But more importantly, it's a video about YOU.
See it here... (It could even save your life or the life of someone you love.) | |
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How to Prepare for the Next Bear Market Alexander Green, Chief Investment Strategist, The Oxford Club
 Two weeks ago, I spoke at FreedomFest in Las Vegas, an investment conference with more than 2,000 attendees.
During one session with conference director and Investment U colleague Mark Skousen - billed as "Dueling Gurus" - I was asked how an investor should prepare for the next bear market.
Since the timing and duration of any down market cannot be known in advance, I suggested that investors should always be ready.
How?
By following a position-sizing strategy, so you never have too much invested in any single security. By running trailing stops behind your stocks to protect your profits and your principal. And, most importantly, by checking your portfolio's asset allocation and rebalancing annually.
At this point, Skousen interrupted to voice his strong disagreement. (After all, this was supposed to be a "duel.")
"What a bunch of baloney," he said. "Nobody is asset-allocating their portfolio. Nobody is rebalancing."
"Sure they are," I insisted.
"No, they're not," Skousen repeated. "Let's see a show of hands. How many people in this room rebalance their portfolio?"
Boy, was I wrong. Only one hand in the audience went up. One hand!
And people wonder why they struggle in the stock market, even as it hits new all-time highs.
Asset allocation, as I've explained here before, is your single most important investment decision. (It's how you divide your portfolio among different types of investment assets, including stocks, bonds, real estate investment trusts, inflation-adjusted Treasurys, gold shares, etc.) Rebalancing annually - which forces you to sell what's high and buy what's low - increases your returns while reducing your risk.
This is the very foundation of Serious Investing 101. Yet Skousen was absolutely right. Almost nobody is doing it.
In fact, many are doing the exact opposite. When the market slumps dramatically - as it did in the recent financial crisis - they sell their stocks and move to cash or bonds.
You might call that Inverse Rebalancing. (Selling what's low to buy what's high.)
Of course, when the market moves higher again - as it inevitably does - these "I was asked how an investor should prepare for the next bear market.
"Since the timing and duration of any down market cannot be known in advance, I suggested that investors should always be ready." | |
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same investors get restless and start complacently buying stocks again.
Then when the next bear market comes along, the whole process plays itself out all over again.
Could there possibly be a slower way of getting rich... or a quicker way of getting poor?
My experience at FreedomFest got me thinking. I know it is popular in the investment newsletter industry to say that you don't need a money manager, that you can manage your money yourself.
And doubtless some can. But a substantial number - perhaps even the majority - lack the time, knowledge or temperament to do it effectively.
These folks would benefit from using an investment professional, provided it is the right kind.
What is the wrong kind?
- Fee-hungry advisors who plunk your money into expensive investment products.
- Full-commission brokers who manage your account on a transactional basis.
- Insurance salesmen who believe variable annuities and whole life policies are the best things since night baseball.
- Anyone who isn't knowledgeable, experienced, trustworthy, cost-effective, fully vetted and without conflicts of interest.
Do such individuals truly exist in our current era of Wall Street greed and duplicity?
Indeed they do.
In Monday's column, I'll explain how they operate... and how you can use them to gain precious time, boost your annual returns and dramatically cut your investment costs.
Stay tuned...
Good investing,
Alex
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Is Your Dividend Stock Safe?
Dividends are the last place to get decent income.
Savings accounts... Treasurys... bonds... they all pay next to nothing.
Dividends are all that's left. But 2016 could be the year of the dividend cut. That's why we've created a tool to help determine if your dividends are safe. Just type in a company name to find out. Details on how you can access our tool here. | |
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Smart investors can spot if a company is setting itself up for an "oh shoot!" moment down the line. Read On... | |
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Americans are driving more, wearing down their vehicles. As a result, one auto company has a huge profit opportunity. Read On... | |
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In today's edition of Investment U Plus, readers are learning about a component of Alex Green's "Escape Hatch Portfolio." It was designed to help investors prepare for whatever's around the bend. To find out how you can get all the details, click here. | |
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The Oxford Club is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. Members should be aware that although our track record is highly rated by an independent analysis and has been legally reviewed, investment markets have inherent risks and there can be no guarantee of future profits. The stated returns may also include option trades. 
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