Monday, February 24, 2014

CNBC:Stock Screens...the Adoption of Smart Beta

Independent Research Reveals Use of Low Volatility & High Dividend Strategies Will Escalate Your Investment Portfolio...

CNBC:Stock Screens  Click on investing at the top and then click on stock screens and I use the high dividend screen.  I, also, check the companies I select on FinViz*Elite for additional information.
It is really quite simple to do in 15 minutes by clicking on the following icon:      click on the screener and enter beta under one and then click dividend and enter over 3%.  You can choose from stocks or ETFs.

Benjamin Graham, Warren Buffett's former professor, employer and Guru, stated the defensive investor will select only high-grade bonds and choose from a diversified list of leading common stocks whose price is not unduly high.  The list may either be based on the Dow Jones Industrial Average (DJIA) or on quantitative testing.  I prefer using quantitative screeners and using both the CNBC Stock Screens and the FinViz.Elite shown supra.

I enter the following quantitative criteria: (taken from the intelligent Investor by Preston Pysh and Stig Brodersen)...
1.  Adequate Size of the Enterprise:  Exclude small companies; some may have possibilities, but the group as a whole is not suited to the defensive investor.
2.  Sufficiently Strong Financial Condition:  Current assets should be at least double current liabilities, known as he "Two-to-One ratio."  This means the current ratio should be higher than 2.0. Long-term debt should not exceed working capital.  For public utilities, debt should not be greater than double the book value of equity.  This means the debt/equity should remain under 2.0.  Earnings Stability: At least some earnings declared in all preceding ten years.
4. Dividend Record: Uninterrupted payments for at least twenty years. (Warren Buffett prefers for dividends to be left as income earnings.)
5.  Earnings Growth: Minimum increase of at least a third in per-share earnings in previous ten years, using three-year averages at beginning and end.
6.  Moderate Price/Earnings Ratio: Current price should not exceed 15 times earnings averaged over previous three years.
7.  Moderate Ratio of Price to  Assets: Current price should not exceed 150% of last reported book value, with allowance for a lower P/E but selling at higher proportion to book value (e.g. P/E of 9, at 250% book value would be acceptable).

One in four institutional investors report using smart beta stocks and ETFs and the likely hood of non-users is likely to accelerate in the near future, according to a new study conducted by Cogent Research, a division of Market Strategies International.  The results reveal that nearly half (46%) of institutional decision makers not currently using smart beta ETFs indicate they are likely to start using the products over the next three years, particularly institutional investors with assets in excess of $500 Million. 

And over a third of the institutional investors, plan on using fundamentally weighted investment strategies. Such as return of equity over 20%, operation margin (positive), return on assets (positive), gross profit (positive) and net profit over 5%, plus return on investment (positive).  And you could do all of this plus more by clicking on the above icon FinViz, Elite and do it in less than 15-minutes per week.

"We educate both users and non-users about the many benefits of Power-Shares smart beta ETF's and  these results reinforce our belief that these products are great investment tools for institutional asset managers as well as retail investors, said Dan Draper, Invesco PowerShares managing  director of global ETFs.  "We are very excited about the future potential of our investment category."

"I agree!"

Bring the Arts to Life Using Smart Beta

Website or blog promotion...  I have used them since 2004 web traffic.

Get the new book; "What Works on Wall Street, Fourth Edition", by clicking on any of the book titles on the right side of the page. 

Wednesday, October 2, 2013

Worry Free 15-Minute Retirement Plan and by Keeping It Simple You Know What You Are Doing

69% of Retirees and 77% of Pre-Retirees Fear Their Savings Will Be Drained by Inflation or Worse ... Financial Planning Made Easy will help you...

You pay no investor advisor fees of 1.25% to 2.25% for a complicated plan that most people have a hard time understanding or keeping up with.
A 2012 study by the Society of Actuaries reveals that the majority of Americans age 45+ are scared to death about their money.
Step one:  you buy a five year immediate annuity equal to  4%-5% income of your total equity investments.
Step two:  you invest the balance of your total equity in stocks or ETFs using our strategy listed below.  (Older Post)   When you are 100% out of  stocks or stock ETFs you put your cash into a short term bond ETF or just hold the cash in an interest bearing account.
Step three:  e-mail, for more information, today.  The best time to plant a tree was twenty years ago.  The second best time is today.  By e-mailing today you can easily avoid investing mistakes, (OUTPERFORM the market 6-1 and secure the retirement of your dreams which is probable based on past performance.)  We will send you parameters and the fundamentals to use with FinViz* Elite.
You can discover a unique and unbiased source of investing information and research that easily guides you to winning investments that match your individual goals.  You will never follow the Wall Street herd right over the cliffs, because you are 100% out of the market in a downtrend.  (Bear Market)
You will avoid the costly mistakes that most individual investors make.  The best way to make money in the stock market is not to lose money in the stock market.

Tuesday, September 3, 2013

Homebrew Stock and ETF Market Strategy that Helps You Outperform the Market…

By using Stock Market Pulse, Big Trends in ETFs…Daily Trend Watch with the SPY Weekly and Monthly Trends for Stocks and ETFs investors protected their stock portfolios before the huge declines of the tech bubble in 2000 and the financial crisis in 2008.  This strategy also alerts you of new stock market uptrends helping you get in at the beginning of a rally to maximize your profits.

What is it?  After much research, study and analysis, we have a simple method for trading ETF’s and stocks based on the market direction we post on our site at FinViz Elite Daily.  The method presents an opportunity to outperform the market in just a few minutes per day.

You keep your profits when the market is in an uptrend and sell when the market is in an uptrend under pressure.  You have zero invested in equities when the market is in correction.  You switch over to ETF in gold or silver. Or you could switch to an ETF short term bond fund.

The following is the performance of the QQQ over a ten year period using the above strategy:

From March 17, 2003 to March 28, 2013 using the QQQ, it was up 218% or 21.8% annual average.

You could use stocks that have outperformed the stock market, S&P 500, (SPY) by three times (300%) or TQQQ.  One such stock was WDR which outperformed and has done well short term with a nice dividend as well.  Go to an investment advisor and he or she would have made you on the high side 13% in one year and on the low side 8.5% using a balancing act of stocks, bonds, gold, and currency and still lose 30-50% in a bear market.

Tuesday, March 12, 2013

Stock Charts, Stock Analysis, Stock Fundamentals, Stock and Market Trend ... the Four Points of Success!

The four corners of success will make you extraordinary profits.  The best talent is bringing out talent in others ... and studying stocks will give you an edge that will increase your talent in buying and selling stocks.  Ordinary people make extraordinary profits in the stock market and so can you.  It can take twenty to sixty hours per week to study and look for good companies.  You could use The Investors Business Daily (IBD), The American Association of Individual Investors (AAII), Stock Traders Almanac Newsletter or FinViz Elite ... to find good undervalued stocks.                

 Peter Guber, CEO, Manalay Entertainment, Owner of the Golden State Warriors and Los Angeles Dodgers, #1 NYT Bestselling Author, "Tell to Win"..."In today's highly competitive and exhilarating atmosphere of change, a leader can't win alone.  Great organizations triumph behind strategic leaders (plural) who use their "Power" to ignite their team's passion and purpose to perform at their highest potential to create long term competitive advantage." 

We will work closely with you to ensure your long-term strategies are tailored to meet your high yield performance goal by beating the market and by having you on the sideline in bear markets. 

Whether you are saving for your children's education, buying a home, growing your business, or building a legacy for your family, our higher yield and performance means a better life style when you retire and while you are retired.

You can sleep better at night knowing our strategy is tailored to meet your lower risk tolerance. 

Getting started is easy: use the icon FinViz*Elite to start today and market trend will become your friend. Or e-mail for more information.

"The best time to plant a tree was 20 years ago.  The second best time is NOW!"  Chinese Proverb...

Proverbs 13:20 "He who walks with the wise grows wise, but a companion of fools suffers harm."

Proverbs 28:26 "He who trusts in himself is a fool, but he who walks in wisdom is kept safe."
                                                                                                                                                            Ordinary People, Extraordinary Profits: How to Make a Living as an Independent Stock, Options, and Futures Trader (Wiley Trading) You will gain insights into trading by studying this book, but many of the web sites, brokerage firm and software programs they promote in the book are not in operation, today.  Maybe this will also be a warning to those who are overly excited about day trading and assuming too much risk with the allure of millions of dollars based on irrational exuberance. The "Unusually Uncertain Outlook" certainly applies here.

A bullish flag (pennant) and bearish flag (pennant) are four of the most reliable continuation patterns there are.  It is possible to make a living trading these patterns exclusively.  Investing with the Monthly Trend is your vehicle for making steady gains with some assurance of avoiding large losses.  There is less risk trading these patterns than trading naked put and call stock options.  And FinViz Elite is a great source for locating these stock formations. You can use FinViz Elite instead of spending thousands of dollars for software investment programs!

These setups usually take no longer than two to three weeks to form providing swing and short-term traders a terrific opportunity for short-term profits.

Even though flags and pennants are common formations, identification guidelines should not be taken lightly.  It is important that flags and pennants are preceded by a sharp advance or decline.  Without a sharp move, the reliability of the formation becomes questionable and trading could carry added risk.  Look for volume confirmation on the initial move, consolidation and resumption to augment the robustness of pattern identification.

 In The Trading Cockpit with the O'Neil Disciples: Strategies that Made Us 18,000% in the Stock Market (Wiley Trading) Is  written by two former William O'Neil + Co. employees who have spent years building upon the lessons they learned working alongside the master, this book delivers powerful trading techniques based on the O'Neil model that you can put to work in your own portfolio, today!  ...real life trades from the authors' own experiences with detailed analysis of what worked, what didn't, and why. 

You can learn to use flags and pennants with a few hours of practice. "In the Trading Cockpit" will make you extraordinary profits by using just seven pages...xv-xvii.  These Four Points to Success will work for you.  Please buy it "today", and see for yourself how and why you should become an O'Neil Disciple.  The questions and answers at the end, is worth more than the cost of the book! jb 

However, you cannot make money day trading as many tell you that you can.  Due to the use of dark pocket trading by many brokers and large investment banks the data we see and chart is not necessarily what the market will do on any given day. 
"Warren Buffett's Three Favorite Books" by Preston Pysh are the books, that make ordinary people extraordinary profits, along with Benjamin Graham's two very popular books which may be purchased by clicking the following: Warren Buffett's 3 Favorite Books: A guide to The Intelligent Investor, Security Analysis, and The Wealth of Nations From 1965 until 2012 there were 15 to 16 years at various periods of time that it would have been easy to find good undervalued companies to buy yet there were fewer buyers than in the other 31 years.  Why?  Carol Loomis, a senior editor-at-large for Fortune and author of "Tap Dancing to Work:  Warren Buffett on Practically Everything", said "I think I've learned many of the things he has been saying, like don't panic.  I don't panic about investing. I've learn about buying when stock prices are low."  Which is just another way of saying she waits to find under-valued stocks of good companies.  Warren Buffett's Favorite Books which include Benjamin Graham's two books will teach us how to qualify what is a good company and you use those fundamentals with FinViz*Elite to accumulate wealth by buying undervalued companies.
Investors are in many ways misled by stock-market volatility.  The values of the underlying businesses just do not change as quickly as stock prices do.  You really do not have to watch those changes hawk like day after day. 

It is in a lot of people's interests to get you to do something.  Advisers and brokers earn commissions, fund companies want you to bring your assets to them.  There are a lot of forces at work in the investment industry to get people to move, and there's not really a countervailing force to encourage you to do nothing.  But you should.

"When you leave it to chance, then all of a sudden you don't have anymore luck."  Basketball Coach Pat Riley ...Warren Buffett said, "It is better to buy a good company at a fair price than to buy a fair company at a good price."  Investing takes a lot of study and preparation.  "The plans of the diligent lead to profit as surely as haste leads to poverty."  Proverbs 21:5

"Plans fail for lack of counsel, but with many advisers they succeed."  Proverbs 15:22    Outperform in a Bull Market and Keep It All in a Bear Market ... Homebrew ETFs: Be 100% invested when the market is in an uptrend, 50% invested when market is in an uptrend under pressure and 0% invested when market is in correction.  Cash could be put in short term currency or bond ETF.  Great and easy to use for your IRA and Retirement Investments...



Sunday, February 24, 2013 ... Financial Visualizations ...

"50+Investors Who Love to Sleep Good at Night!"; "What ever method you use to pick stocks ... your ultimate success or failure will depend on your ability to ignore the worries of the world long enough to allow your investments to succeed. It isn't the head but the stomach that determines the fate of the stock picker." Peter Lynch (Fidelity Investments, Beating the Street, 1994)

Long-Term Investing:

Training your brain to be a better investor...What did you do with the last mailing from your retirement plan? 
If you chucked it in the trash without looking at it, you are not alone.
Most people don't save enough and then pay very little attention to their investments  Let's face it: Figuring out how much you are paying in fees, or whether your assets are compounding at a rate high enough to sustain you through retirement, is just not that much fun.
Americans pay a price for this lack of attention.  The average 401 (k) in 2011 held $98,481 in assets.  The average IRA account balance in 2011 was $70,915.  You don't have to be a math whiz to realize that those balances ought to serve as big red flags.  About 53 percent of households are "at risk" of not having enough to maintain their living standards in retirement, according to the Boston-based Center for Retirement Research.

Alexandra Lebenthal, chief executive of Lebenthal Holdings, a money management all your statements and prospectuses closely.  Do not depend on your adviser to do it for you.  Everyone has the responsibility to know what they are investing in and what they own.
And just as the best time to plant a tree was twenty years...the second best time is today.  You have to bring this matter of your future retirement to the forefront of your brain and act on it today. 

Do you have the Secret?  Do you have the secret to success?  The law of having success in relationships, business and money is Attraction.  You have to ask yourself what and how much do you want.  Then you have to believe you will have it (attract it).  And then you will receive it.  You become what you believe and see in your mind's eye before you receive it.  It starts in the forefront of your brain by thinking and acting  upon your thoughts.

 "Price yourself high and see what happens.  Humans are not good at knowing their market value.  (Scott Adams, creator of "Dilbert and author of "How to Fail at almost Everything and Still Win Big".