I suffered through the serious bear market of 1980 – 1982 when interest rates spiked to double digits on US Treasury Debt. Then the bull market of the 1980s and 1990s began during August 1982 thanks to President Reagan’s wise economic policies which encouraged saving for retirement through the creation of the Individual Retirement Account (IRA) and lowered tax rates across the board which helped to spur real economic growth. Also Paul Volker had pushed US Government debt to over 12% per year for the next 30 years. That is 1% per month, paid straight from the US Treasury. Now interest rates for the US Government and for many companies and consumers have fallen to low levels and have stayed there ever since the 2008 Financial Meltdown. The stock market meltdown in 2008 really shook my confidence in buying and holding as a long-term investing strategy. For many years the conventional wisdom was that stock prices would grow roughly 10% per year over the longer term, but at times of extreme bearishness stock prices would tumble lower and lower. I felt that my stock selections would be OK but seeing the prices plunge shattered my confidence in “buying and holding” and since then I have tried to be more nimble in trading. I have long looked at stock charts to see the longer term view of how a company has been doing and have tried short-term trading, including buying put and call options, but have had mixed results doing that.
Stock investors are always asking what is the catalyst for value to be realized? I originally thought like this which lead me to take too much risk. I now focus on being patient, controlling risk, and minimizing permanent capital losses. These steps have lead to significantly better returns. Even when there is no clear catalyst, an undervalued stock is eventually its own catalyst.
I think the benefits of communicating on Seeking Alpha are enormous. Many times I have a strong financial view of a company but do not understand the specific industry or industry competitive dynamics. I can often interact and read insightful comments from engineers, scientists, and technology experts. These experts offer great free advice and I try to add value in my specific areas of expertise. One area that I have been specifically helped is the energy sector.
While some investors are very negative of people who short, I view shorting stocks and posting factual information as noble. The focus of course is on truthfulness and accuracy of this information. Anyone who is posting rumors, lies, or other unscrupulous behavior (long or short) to manipulate a stock should be prosecuted to the fullest extent of the law.
I graduated from the University of Arizona in 2002 with a BS in Finance. From 2002-2006 I worked in the Wealth Management Group at Bank of America. I left Bank of America to manage family/friend money in long/short equity strategies. I also helped start-up two internet retail businesses.
I don't post much on twitter but think it is another great resource. I can be followed at https://twitter.com/jrhUofA
I currently live in Phoenix, AZ. If you live in the area and are a serious investor, please send me a note as I would be happy to meet and exchange our best ideas.
I am a 30 year old individual investor that maintains my own portfolio with preference to the DGI strategy. I have a 401k that I contribute to as well to earn matching contributions. I also invest in growth stocks, in which I believe have substancial upside at a reasonable price. I have been growing my portfolio through regular contributions and spend a lot of time researching and learning with content from SA, Schwab (Morningstar) and Yahoo Finance. I plan to write a few articles in the future about my life and investing decisions. Thank you for your time and I hope to provide quality content that can create some excellent dialogue.
I am a CPA, CFE and have a BA in finance. I don't like to lose money.
If there are any bank stocks you would like to have regular quarterly/semi-annual coverage on let me know, I add a lot of names throughout the year but want to provide regular coverage for interested readers.
I am a 50-something medical professional, trying to prepare myself and my husband for retirement. Predominantly a "DGI", as my parents retired early using the method, although I don't think it had a label at the time. Also own real estate.
Any opinion(s) expressed in any form by me at Seeking Alpha and/or related websites are strictly my own personal views and ideas. They should never be considered advice of any kind, nor considered to be professional opinions.
You should always seek advice from a qualified professional before embarking upon any plan of trading or investing.
All the Best!
Invest. Manage risk. Communicate. Educate yourself. Make profits. .
My name is Todd Johnson. I’m a family man, sports fiend, health nut, technology buff, long-time stock investor, and a very lucky mountain climber, all of which has shaped my philosophy as a professional investor for the last 30 years. As my interests might suggest, I am always looking for the upside while striving to minimize risks.
My new passion, which I have realized through DividendLab.com project, is helping other investors learn more about investing; investing in stocks and other assets that are subject to wide price swings can actually enhance their returns when the right investment strategy is applied. To that end, I read company 10k and 10q statements so they can skip them. I compile and analyze the market research that isn’t always at their fingertips. And I don’t make any investment recommendation without committing my own funds first, which is the purest form of accountability.