Monster Portfolio 2011 Week 33 Results

MONSTER PORTFOLIO 2011

Balance: Inception 01/07/11
$1977.32 Stock
$13.65 Cash
Total $1990.97

Balance: End of Week 32 08/26/11

$2,333.12 Stock
$82.88 Cash
Total $2,416.00

Since Inception: -8.19%

Back out cash inflow and we have a balance of $1,828.00. 


My portfolio gained +6.38% vs. last week results.  Not a bad bounce off the low’s!  I wish I could smooth out the volatility, but it doesn’t appear I can do that with a couple of grand.  For many of you that follow my blog my portfolio is wild.  I own 3 individual companies of course it’s going to be volatile. 

For those of you who are long term investors this portfolio isn’t for you.  It's for those who would like to turn a little bit of money into something potentially larger in a short period of time.  Long term investors should be investing completely different.  Investing in index funds is a perfect way to come accustom to the stock market.  The last month or so has been out of control, but I don’t want that to deter anyone from investing.  If you are a person that can think long term, this short term volatility shouldn’t bother you one bit.  I constantly hear people say I’m going to have to work another 20 years in order to retire. I lost a lot of money in the stock market and I can’t see the end in sight.  Folks there is no evidence that this is true! The market will snap back!  Human nature is to get down on yourself when things aren’t going your way.  I have the same problem, but a few months later I’m back on the saddle looking for a way to make my money back sooner than later. 

If anything I’m a great example of a person that can manage to weather the storm.  I don’t know too many people that can withstand losing 20% in less than a month and still feel good about the stock market.  I take the market downturn as a learning experience, but also as an opportunity to exploit the best situations for potential financial gain.  You have to be active.  When you’re losing money it’s easy to stick your head in the sand.  You are not doing yourself any favors.  Address the situation.  Determine if your investments are still worth owning.  If you come to the conclusion that there are better opportunities to make money elsewhere sell your investment immediately.  If you continue to like your current investments, it’s a perfect time to buy more.  Remember you are investing for your future. 

My philosophy is when in doubt buy more. LOL! I have always made most of my money when stocks are out of favor and have lost a lot at the top.  When I feel great about the stock market that is when I should be selling.  Invest when others are scared and a majority of the time you will come out ahead.  Even though my portfolio has fell back into the red I still believe investing in stocks is by far the best vehicle to create wealth over time. 

Clay-

Current Holdings:
Apple (AAPL)
Cosi Inc. (COSI)
Weatherford International (WFT)

"When in doubt buy more!"

New To Investing? Invest For Fun! Test Your Skills At Marketocracy

Hello,

Thought I would put this out here.  If your new to investing and wish to test your skills check out marketocracy.com I have been using this investment site for over 3+ yrs and it's a great way to test your investing ideas without using your own money.  At Marketocracy you will be able to create your very own mutual fund.  You will start out with $1,000,000 to invest.  You will be able to track your progress and see your rankings against other investors.  It's a phenomenal learning tool!   Give it a shot! 

Thank You,

Clay-

Have a Question? Send Questions to wheatleycsmk@gmail.com

New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower

Stock Market Worries? What Goes Up Must Come Down!

To all my followers it seems that the passed couple of days have been rough for anyone that owns stocks.  I'm here to tell you that everything will be just fine!  The U.S. Stock Market has been on a run since March of 2009 and frankly as the saying goes WHAT GOES UP MUST COME DOWN!  Markets move up and down and there will be corrections along the way.  I'd rather see the stock market pull back gradually than what we experienced in 2008. 

Europe is playing a major role in dragging the U.S. Equity market down.  Please don't be discouraged because the best time to buy is when you feel awful about the stock market.  Invest in companies that have good fundamentals.  What I mean by that is companies that have good earnings, little debt, possibly a dividend, great management, and a optimistic outlook on future business. 

Many companies have been sold off way to far and warrant higher stock prices.  Stay optimistic and in the end you will be the one living comfortably in retirement!

Come visit tomorrow as I will have new material on what to look for when choosing a Mutual Fund for your 401K or other Retirement Fund.

Thank You,

Clay-

Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower

Stocks Trade In Negative Fashion/ What Really Makes Stocks Go Higher?

    Not much to say about today's trading.  The Market started in negative territory and showed some sign of hope during the middle of the day, but in the end the selling pressure continued as there wasn't anything to drive the market higher.  The job market is still an issue and Kohl's the retailer department store came out with disappointing earnings.  These are 2 negatives and with no real positive news to counter the bad there isn't really any reason for the stock market to go higher.  Why are jobs a big deal?  The reason is when jobs are created people spend more money to fuel the economy.  The economy won't prosper until the job market becomes positive. Kohl's on the other hand shows exactly what people are spending.  When consumers aren't spending money the retailers such as Kohl's profits are hindered by this.  Yes Kohl's put out earnings that were better than analysts expected, but didn't meet the future earnings that the analysts wanted to hear. Information gathered through http://finance.yahoo.com/

    Here is a little insight about the stock market.  The funny thing about stocks is that the Large Institutions and Fund Managers invest for the future. They are the ones with a large portion of the money invested in the stock market.  They don't care about what occurred or what has happened in the past.  They want to know what is the outlook for the future.  If the future is promising, that is where they are going to invest their money.  Once the outlook doesn't match with what the Large Institutions and Fund Managers are looking for they find other companies to invest in.  That is why you see stocks drop suddenly.  The Big Money is pulling out their investment and has found a better opportunity elsewhere. 

    The Large Institutions control the stock market.  This is a fact!  The key to investing is to find out where the Big Money is investing and buy those companies to take advantage of the Large Institutional buying that occurs.  The great thing about being a small investor is that you can get in and out of a stock much quicker than the Institutions.  Really if you could be right half the time and invest before the Big Money has a chance to be fully invested you will make money.  It can take some Large Institutions weeks to be fully invested in one particular company.  The reason behind that is in order for a Large Mutual Fund to perform and make people money they have to invest millions of dollars.  They can't just buy all at once because the demand would be so great it would drive the price of a stock through the roof! For Example:  A Fund Manager wants to invest $100 million in stock xyz.  In order for them not to show others what they are doing they must buy stock over a period of time.  So instead of investing $100 million all at once they may invest $5 million a day. That means it would take about 20 trading days or roughly a month to be fully invested.  That is how Institutions work!  In the end the small individual investor has the edge over the Large Institutions.  You just have to obtain the right information and you can beat them every time!

Thank You,

Clay-

If this was beneficial information or you would like to comment please do.  I would like to hear what you have to say.  Feedback Welcome! Ask me a question wheatleycsmk@gmail.com

Stock Market Volatility! My Take On Today's Stock Trading

    Well today was a wonderful day to all that had their money invested in the stock market.  The Dow Jones closed up 404.71 points or 3.90% coming in at 10,785.14 and the NASDAQ closed up 109.03 points to 2,374.67 up 4.81%.  Lastly, the S&P 500 came in at 1,159.73 up 48.85 points or 4.40% according to http://finance.yahoo.com/ 

    A great deal of the upside came from the EU rescue package of $1 Trillion to help save the Euro and settle investors of the European debt market.  This helps keep money flowing and also put the short sellers up against the wall.  Short sellers are people that bet against the market.  This in turn creates buying from the shorts to cover their position of betting against the market and sends stocks higher.  Don't get me wrong today was a great day to make money and take some profits, but the market is still very volatile and unpredictable in the short term.

In the near term I'm still very cautious about this market as I sold some stock into the strength of the market today.  I believe the market will move back lower in the near future at least in some of the individual stocks that I follow.  This will give me a better opportunity to buy at lower prices  Today was a perfect example of why I enjoy investing.  Investing can be fun and profitable at the same time. If your not having fun you must be doing something wrong!  Everyday is different and you have to take it in stride. 

Thank You,

Clay-

If this was beneficial information or you would like to comment please do.  I would like to hear what you have to say.  Feedback Welcome!