Home Forums Hunting & Shooting Hunter's Campfire Don't look now but stock market is booming

I have my entire portfolio invested with this guy's recommendations for the past 18 months:

https://seekingalpha.com/author/rida-morwa/articles#regular_articles


Our Strategy For Successful Investing

Our strategy remains to achieve an overall dividend yield of 7-9% and long-term capital gains. We seek to achieve our objectives by using the following strategy:

Keep closely monitoring macro-economic forces at play: they tend to dictate where the general markets are heading and which sectors will be winners or losers.

Be diversified into sectors and geographically. Our Core Portfolio provides a good example of diversification.

Be opportunistic. Buy into stocks and sectors that are undervalued and have a good potential upside.

Have a high allocation to sectors, rather than individual stocks, to hedge against risk. For example, high-yield exchange traded products (ETFs, ETNs and CEFs) are well diversified and can sometimes provide a more balanced risk approach than investing in an individual stock. Also, it is much easier to take a view on the outlook of an entire sector rather than on an individual company. This is a common sense approach to safe investing and is the main reason we have 50% of our portfolio allocated to exchange traded products.

Look forward - Past performance is not always a good indication of future performance. Stocks do not continuously go up or continuously go down.

Be patient: Our strategy includes buying undervalued stocks with a positive company-specific outlook and solid sectors' fundamentals. Sometimes we pick up stocks during a sharp pullback. These stocks may continue to fall in the short term because it is impossible to predict a bottom. In such cases being patient pays off as fundamentals tend to prevail.

Finally I encourage HDO members to understand well the securities and the sectors into which they are investing in order to have confidence in them. This helps avoid taking unnecessary losses due to panic selling if the markets turn against us.

Sincerely,

Rida Morwa, Philip Mause, & Jussi Askola

Bingo, bingo. Life is easy, don't make it hard. Oh yeah...leave the money in there for a few years and don't worry about it. If you made a sound investing decision, then there is no need to re-examine it every day/week/month.

Thanks, I try to be nice here on the 'fire, you've got to be extra nice trying to debate one of those idiots in person, would be so damn easy to go to jail.

With 100K I would put some in Emerging markets cause it went down 2% in two days. It should come back up in a week for a 2% kick off. Sprint Airlines is undervalued but it has no div. I bought some and regretted it so far. I think oil is going to do well in the next year or two. I have British Petroleum ( BP) and if you buy a bit high the Div. will help a lot 6.4% div. as of now. Royal Dutch Shell ( RDA-B) has about 6.5% div. also . I may also put some money in Energy Transfer Partners ( ETP) for a 10% div. It is oil pipelines. Oil will go up and the pipelines will be used to move it. It is very hard to find something undervalued right now.. Smallcaps are a bit undervalued but have already come up quite a bit in the last month. Vanguard madcap Value ( VOE) has lagged so it will most likely outperform the broad large cap index funds of a while anyway. VOE just may be my favorite ETF. I think the S&P 500 is a bit over priced due to the overweight of the TECH stocks and I think they will come down enough to hurt the whole fund. NO? If AT&T goes back down I will buy some more for the 5% div. , , maybe , but for now I think the market is high and I am saving to put $ 13K in our ROTH in only 3 months till the new year so I will most likely wait unless there is a deal that is a " OH HELLL YA" buy it deal but that is rare these days.

Dang, reading all that nearly gave me a headache glad i have folks that take care of all that complicated stuff for me.

Bumpus in da rumpus

All that money and he cannot afford a paragraph break!

, the content hurt me worse ;]

Yeah, it went to Democrat support groups, welfare recipients, and foreign banks.

The Fed is trying to suck their money back out of the system over the next few years. Don't fight the Fed, you'll lose every time.

Agreed, with minor edit.

Anything more "sophisticated" (HA!) than putting money into index funds requires a very high risk tolerance AND a willingness to lose a bunch, even in the long term.

The average stock market return over the last 100 years is right around 12%. All you have to do is put your money in and KEEP IT IN. The only people that get hurt on a roller coaster are the ones that get off before the end of the ride.....

Lol it appears I owe you a beverage of your choice gunner


That was good

the thunderbird school.
what we call it locally is the thunderbird school of international bartending.
I am not concerned about an average over the last 100year.
I am concerned about the next ten years given i am 70.
A fool and his money are soon parted.
There should be some concern of chasing dividend yields that high given the safe rate of return.
Oh well
these columns make me giggle.
if it was so friggin easy how come everyone isn't a multimillionaire?

Is a stock market boom a good thing now that Trump is in office, or does it still only help out the fat cats?

This is good advice for 90% of the little people. I wish I had followed it from an early age.

Ron, there are plenty of 70 year old + in the HDO system. If you are curious at all, I would recommend you sign up for the free two-week membership and get on the chat board and talk to all the other investors in your age category.

The reason is because people don't put money in the stock market and keep it there. It really, really is THAT simple. Pick a few mutual funds, put money in every year, and ride it out. In the long run, your money will double every 7 years.

This is Dow Jones since 1900:

That's what I've been doing since my timing luck is about as good as my luck with Remington bolt handles.

I bought into three large Vanguard index funds starting in March of 2008 - a perfect time to make a killing, right? I keep a spreadsheet showing how much has been invested in each fund and total current value. Starting in September and for over a year afterwards it was so depressing to look at that I quit putting a dollar amount in the “Current Value” column and just wrote “In the toilet”.

But I kept buying $X of each fund at the beginning of each month through thick and thin. Not huge amounts by some folks’ standards, but several hundred dollars total each month treated as a monthly bill just like a car payment or mortgage. Sometimes if I had a fair amount of surplus income at the end of a month (i.e. I hadn’t bought myself a new toy that month), I’d invest some more.

The current value slowly crawled out of the toilet and now 9 years later it’s looking pretty darn good.

If you invest $300 per month at the average stock market return of 12% from age 22 to age 67, you'll accumulate a $5.5 million retirement stash.

Now, watch, and some of the nay sayers will come on and say that inflation will turn that $5 million into something not worth worrying about, or that it can't be done, or that $300 per month is too much money. Shut up. It's less than half of your stupid car payment. Mow a few lawns every month, and you can retire a millionaire. For the price of basic cable, you can have a million $ retirement nest egg. There is no excuse.

That is the same thing Dave Ramsey says. Kinda funny hearing him say that.