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Actually I never dropped it. I'm still thinking of jumping but not sure what to jump to. Part of me is hoping value oriented investing (which is The Prudent Spe
by reddytowns 10y ago
Actually I never dropped it. I'm still thinking of jumping but not sure what to jump to. Part of me is hoping value oriented investing (which is The Prudent Speculators' main principle of investing) will make a comeback, but I'm not sure how likely that is.
They say that value oriented investing wins out over growth at the end, but here is a graph comparing the two that tells a different story over the last 10 years, IWO is a growth fund and IWN is a value fund (unrelated to The Prudent Speculator, but same strategy):
https://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1474313040000&chddm=987631&chls=IntervalBasedLine&cmpto=NYSEARCA:IWN&cmptdms=0&q=NYSEARCA:IWO&ntsp=0&ei=nengV7mlJZCa0ATAg7WACQ https://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&...
I was thinking of Louis Navellier, he seems to pay a little closer attention to the winds of the market, where as The Prudent Speculator just ignores them for the most part, and follows their basic strategy, but his newsletter is kind of pricey.
I don't want to invest in mutual funds, because I have the USA Citizenship curse that means I am taxed on profits. So, I try to shuffle around my losers every year and keep my winners alone. This way, I save money on taxes (aka Tax harvesting)
If you don't mind sharing, did you decide to follow a newsletter based on Hulbert's? If so, what is it?
- alejohausner 10y agoWell, I would rather not say, but a couple of plans stand out, which I might look into: The Forbes Special Situation Survey. They're value oriented, and have been around for a long time. They hold about a dozen stocks at a time. Investment Quality Trends. These guys have been around since the 60s. They pick high-dividend stocks. Their notion of 'high-dividend' uses some chart tea-leaf reading: they assume that a stock's dividend yield will tend to range between a historical min and max, and they recommend a stock if it has a high dividend, relative to its own historical range. Lots of boring stocks like KO and IBM, but the newsletter does pretty well historically, and has low volatility. Another method I've thought about about is the 'Permanent Portfolio'. It's not a newsletter. Simply put 25% each in an index fund ETF, stock ETF, gold ETF, and cash. Rebalance once per year. It's popular with end-of-the-world preppers, and underperforms the market, but it has VERY low volatility. Good for sleeping at night.