We considered top stock picks for turbulent market conditions, yesterday. U.S. auto manufacturers are frightening examples of how blue chips of the past can have bleak futures.
Nothing is forever in the stock market.
No stock issues guarantees against price declines.
Sustained stock market success demands that investors must think like doctors. Think ahead. Do not be misled because patients say that they are fine. Make a thorough examination. Use the best diagnostics on offer. Arrive at a diagnosis. You can provide symptomatic relief in an emergency, but management without an established understanding of the cause will not lead to a durable solution.
You can use concepts of medicine even if you are not a doctor-not to practice quackery, but to survive in the stock market.
The term ‘cash is king’ has come back in to fashion as the penultimate week of June 2008 trading unfolds.
It is opportune because cash flow changes herald future changes in the fortunes of stocks.
Retained earnings, buy-backs, early loan repayments, titles to natural resources, hedging in favor of limited materials, protection against badly governed currencies, and cost re-engineering, are positive signs. Reverses are equally true.
Exit blue chips that exhibit negative signs. Divert your portfolio to stocks managed by professionals. Forget indices, today’s stock exchange, and day trading.
You can also switch your TV from business to music.
No comments:
Post a Comment