Sea of Money
This week's Market Shadows Newsletter provides an index of educational articles on various aspects of investing. In this collection, Paul Price shares his methods of building a stock portfolio and his strategies for using options.
The full Market Shadows Newsletter, Sea of Money, is here >.
EDUCATIONAL ARTICLE INDEX
BUILDING A VALUE STOCK PORTFOLIO
Building a Portfolio from the Ground Up – Part One. Basic portfolio building rules.
Building a Portfolio from the Ground Up – Part Two. Allocate wisely.
Make Money – Adopt a Dog. “And the last shall be first.”
“You’re Nuts to Average Down.” Not true, but keep your position sizes under 5%.
In Love with TINA. Why love stocks? Because There Is No Alternative.
Why We Diversify. To avoid disaster.
The Trouble with Tech & the Dethroning of Darlings. APPL is transitioning from Darling to value stock.
Whether stocks are cheap is besides the point. Owning equities provides a chance to preserve value as paper money is marked down.
P/E 10 as a Valuation Gauge = Incomplete Information. Price/Earnings ratios are not set in a vacuum.
Individual Investors Remain Perfect Contrary Indicators. Buy only when you find good value for your money.
Unloved Stocks Rocked in 2012. The requirement that shares exhibit technical strength prevents analysts from naming the best bargains as their top picks.
Never Met a Rich Pessimist: Interview with Dr. Paul Price. Trying to predict the unpredictable is a fool’s game.
WHEN TO BUY STOCKS
Frustrations and Rewards of Value Investing. Buy the unpopular. Sell the beloved.
Equities not yet pricey enough to entice retail investors. We’re still bullish, but looking for values.
“You’re Nuts to Average Down.” A myth.
Make Money – Adopt a Dog. The least loved equities often outperform.
Year–End: Investors were Penalized for Holding Cash. Waiting for better prices proved costly.
WHEN TO SELL STOCKS
Sell Discipline – Have a plan. And don’t ditch it at the last minute.
Call Me Maybe – Covered calls impose “sell-discipline.”
SELLING PUTS
Shares plus Covered Calls Vs. Selling Naked Puts? Selling a covered call (buying a stock and selling a call against it) versus selling a naked put.
Selling Puts on Value Companies – A New Virtual Portfolio Selling a put is a bullish position. It is similar to a below-market limit order to buy a stock.
Selling Puts on Value Companies (Part Two).
COVERED CALLS
Call Me Maybe. Selling a call against a long position brings in income and imposes sell-discipline.
Covered Calls – The Hidden Risk for 2013 and Beyond. It was not a good time to sell calls.
Shares plus Covered Calls Vs. Selling Naked Puts. Selling a covered call versus selling a naked put.
HEDGING & TIMING
The High Cost of Hedging. Why pay those high insurance premiums?
Year–End: Investors were Penalized for Holding Cash. Waiting for better prices proved costly.
March Madness and Your Trading Decisions. Flipping your positions has more downside than you think.
INFLATION
Washington’s Biggest Lie. Yes, Virginia, there is price inflation.
GOLD
What have you done for me lately? Precious (metals) little. It’s hard to quibble with having portion of overall net worth in something tangible.
All That Glitters… Avoiding being hit by falling gold bricks.
Hidden Dangers in Gold – Part One. When the guy loading wholesale beer knows the price of a gram of gold instantly, worry.
Hidden Dangers in Gold – Part Two. Gold is not a great hedge against inflation.
Gold’s ‘Highly Inflated’ Track Record. Gold’s track record is highly inflated.
Mettle Trumped Metal. Fundamental investing won.
BEWARE OF WAFFLING MARKET GURUS AND DON’T CHASE HEADLINES
Schizophrenic ‘Rear-View Mirror’ Covers from Barrons. Invest based on fundamentals rather than whimsical backward-looking data.
You don’t need a weatherman. Tune out the noise.
Always Question Assumptions. The rationale for a price goal may be built on quicksand.
Wall Street Cheats – Don’t be fooled. We can all be market geniuses with the benefit of hindsight.
You only see what they want you to see. Selective advertising.
Market Comments: Lots of Words, Little Meaning. The market always goes either up or down.
Individual Investors Remain Perfect Contrary Indicators. Train yourself to ignore the news.
Scare Tactics – Prepare Yourself to be Bombarded. Bad news sells.
