Investment Strategy Archives - Capitalist Times

Investment Strategy

Focus on What Matters

By Roger S. Conrad on Jul. 16, 2017

Remember that the stock market comprises a wide range of investors and institutions whose different objectives and strategies dictate how they react to the news. In many instances, their approach may not align with what’s in your best interests; follow their lead at your own peril.

Three Strategies for a Mixed Performing Portfolio

By Roger S. Conrad on Jan. 16, 2017

Many investors ask themselves the most questions when their portfolio is performing solidly mixed. First written in Conrad's Utility Investor, here are three strategies and considerations for when your investment next steps aren't clear. We also include thoughts on what's happening in the high yield space, given investor enthusiasm for such names in recent weeks.

10 Trends for Essential-Service Stocks in 2017

By Roger S. Conrad on Dec. 12, 2016

The December 2015 issue of Conrad's Utility Investor emphasized the importance of diversification to generating differentiated returns in 2016. Despite a few laggards, that article's picks outperformed, generating an average total return of 18.6 percent. This year, we opted to highlight 10 trends that should drive outperformance.

Economic Indicators on the Move

By Elliott H. Gue on Nov. 17, 2016

The Federal Reserve has contended with deflationary pressures and a slower rate of potential economic growth, challenges that have made it difficult to hike interest rates. Higher inflation and stronger GDP growth should enable the US central bank to hike interest rates without damaging the economy or triggering a selloff in the stock market. The prospect of accelerating economic growth, higher interest rates and reduce regulation should give financial stocks a boost.

The Value of Valuation

By Elliott H. Gue on Oct. 5, 2015

Valuations affect the S&P 500’s returns, but this impact manifests itself more clearly over the long haul. In other words, price-to-earnings ratios are a poor metric for timing the market, but a useful tool for investors looking to hold positions over a longer time frame. What does that mean for investors? The stock market looks expensive right now; historically, buying the S&P 500 at these levels would result in positive, but subpar, returns over the next 10 years

Stop the Madness: The Dark Side of Stop-Loss Orders

By Elliott H. Gue on Aug. 31, 2015

Many individual investors set stop-loss orders to limit their downside risk in the event that an individual stock blows up. But in some markets, stop-loss orders—especially those set indiscriminately—can saddle investors with unnecessary losses.

Fear, Greed and the Purchasing Managers Index

By Elliott H. Gue on Mar. 10, 2015

Recent movements in the Purchasing Managers Index for the US manufacturing sector suggest that the stock market is overdue for a pullback.

Three Keys for Successful Investing in the New Year

By Roger S. Conrad on Jan. 3, 2015

Our Model Portfolios in Conrad's Utility Investor outperformed in 2014. Here are the three keys we'll focus on in 2015 to keep the momentum going.

Warren Buffett’s Biggest Mistake

By Elliott H. Gue on Dec. 29, 2014

Warren Buffett's biggest investment mistake holds an important lesson for investors eyeing value opportunities in the energy sector. Finding success as a value investor requires patience, real analysis and an understanding of industry- and company-specific trends. Nostalgia and backward-looking stock screens won't be of much use. If you don’t believe me, just ask Warren Buffett.

Caution and Vigilance

By Roger S. Conrad on Dec. 21, 2014

Utilities look well-positioned to weather any systemic risk that might emerge from the recent fall in oil prices. But investors should remain cautious and vigilant.