(For more info go to Facebook.com and type in search box “Investing IQ” then search for Randall Williams to see the portfolio by clicking on Applications, then “Allow Application.”
CAKE nice setup for Value investors (my port is Growth. It’s always interesting when you see Value & Momentum, anyway…that would be CAKE. 4/6/10 4:23 PM
Saw you initiated a position in SIVB today. Never heard of it but everything about this company looks good after a fast screening, except that they don’t pay a dividend ^^ What do you see in it?
My portfolio style is growth, not value. I was wanting to add a regional bank, but was difficult to find the right combo of good chart pattern and a growth stock in this industry group. For instance, ZION is a value stock, but probably has more momentum than SIVB. In fact, SIVB isn’t even classified as a momentum stock at present, which could be in my favor if it gains momentum later. You can track this industry using these tracking stocks (ETF’s) such as KRE and for the sector (financials) using VFH. I wanted a bigger position (arouond 5%, but only had cash for half a postion).
They were saying on CNBC today (last hour) how that the low volume indicates how folks still don’t bellieve in this rally. Then Maria B. posed the rhetorical question, “What does it take for people to believe?” I broached this topic yesterday on the community message board, and it did not go over very well. Perhaps that proves my point! [My comments had to do with Mom & Pop investors still not believing in this rally, but it seems like most people don’t understand why that is important, and in a good way, for the bulls.]
My question is, who cares if they don’t? What does it matter? It’s not our job to convince people. I’m actually not a true believer but I’m riding the trend. I’m lagging because I took money off a while back waiting for a pullback that never came. I think we can ride higher than this but I will probably take start to take some gains off if we move much higher.
Great question, thanks. In my opinion, it is a very good sign that people don’t believe in any given rally. That means that the rally has “legs” (potentially more room to rally). So, I think it matters a lot. I think it also helps to look at bonds, because a lot of money was going into bonds over the past year, all the while missing perhaps the biggest rally in market history. When people hate stocks, that is good for being long. In the laste 90’s everyone love stocks, and the market was actually very tricky (I remember the best performer of 1999, which was QCOM, gapping down over 40 points, to rally back later).
See post last week on my message board (below): <<Bullish market break if SPY holds here above the 117.30 level…it could be an end of quarter headfake.>> SPY now at 118.50+ ….It was an interesting and tricky time for the market, with eight, yes 8, doji’s and spinning top candles at or near that very level. 4/5/10 10:30 AM
CREE: You may remember seeing the stock reco on the Maximize401k.wordpress.com blog from a few months ago. Wow, that was weird, just as I was typing this, they were talking about it on CNBC. As far as the p/e is concerned, it was be well below 50 in a few months (perhaps less than 6 months). Tremendous growth. If anyone had wanted to MAXIMIZE their 401k (the new pension plan for Americans, even for state pension funds, such as Nebraska, the Warren Buffet state) – this would have been the stock to buy, as Maximus indeed reco’d !!! 4/5/10 10:24 AM
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Depending on your time frame and your investment strategy, many of your positions should have been stopped out. I am posting the model portfolio for purposes of illustration (some should have already been stopped out.) We are not currently proposing any new buys. Also depending on your strategy, perhaps half of the winning positions should have been sold after a 15-20% gain.
The “Cash for Clunkers” U.S. Government program cost taxpayers $24,000 per vehicle sold per Edmunds.com data. Can you imagine the government waste waiting for us with the upcoming “health care overhaul.” For more Halloween Fun, visit: 
My purpose for this blog is not to go into any details about the fundamentals (financials) of the companies that are placed in the model portfolio. In fact, I don’t even tell you what they do. This information is easily obtained, and my intention is to accomplish my purpose for this blog with as little writing as possible.
Maximize401k's Blog 
Response to Time Magazine article Cover Story Saturday, Nov 7 2009
News & Comments maximize401k 3:35 PM
I recently posted an excerpt from the Time magazine article cover story suggesting that American’s main retirement vehicle should be “retired.” Here is a good response to that article.
Tips to Make Your 401(k) Work For You
It’s surprising there aren’t many calls in the press to ditch the automobile. After all, think of all the dumb things people do with them. They drive much too quickly and sometimes after drinking lots of alcohol. They even drive while sending text messages, putting on makeup, and reading the newspaper. The consequences can be dire: More than 40,000 Americans die in auto-related deaths each year, with nearly 3 million suffering injuries of some kind. Of course, it would be impractical and silly to outlaw the automobile. They are too intertwined in our lives and are beneficial in many ways. And it would be unfair to blame the automobile for its misuse.
Yet that’s exactly what’s happened in the case of another vehicle, in this case, the main retirement savings vehicle for most Americans: the 401(k). A recent Time cover story called for the retirement of the 401(k) itself, using the often-catastrophic losses investors suffered in the 2008 crash as the argument against them. But just as cars don’t cause accidents, there’s nothing inherent in a 401(k) that dooms you to a substandard retirement.
The Time article was trying to make a broader point that the do-it-yourself nature of the 401(k) makes retirement savers much more vulnerable to unpredictable fluctuations in the market, especially versus the company-provided pensions of yore. Although pensions aren’t perfectly secure either, it’s true that even investors with thoughtfully conceived 401(k) portfolios suffered heavy beatings in 2008. Those nearing or in retirement were dealt an especially tough blow as they faced living off a much-smaller nest egg and because, unlike younger investors, they don’t have as much time to recoup their losses. (If you find yourself in this unfortunate spot, click here for some advice on how to cope.)
Regardless of its shortcomings, though, the 401(k) is probably here to stay. And contrary to the impression provided by the Time article, using one successfully isn’t a lost cause. Here are a few tips on how you can make your retirement plan work for you.
Save More
The Time article does make one claim few can dispute: Americans don’t save enough for retirement. And, of course, it doesn’t help that over the past decade, stocks have gone nowhere, just like most investors’ 401(k) balances. Fortunately, there are some good reasons to believe that the next decade for stocks may be better than the last (long periods of subpar returns historically have been followed by long periods of above-average ones), which will give 401(k) accounts a boost. But you can’t rely on the market to do all your heavy lifting. If stocks and bonds don’t provide the return you need, you’ll have to fill in the gap by saving more.
Of course, saving more can be easier said than done, especially now, with so many households strained by high debt, stagnant incomes, and unemployment. If it’s not possible to change your savings patterns dramatically right away, start small. You can pledge to increase your savings rate by a percentage point (or more) every year, for instance. If your 401(k) plan has an option that automatically increases your savings rate on an annual basis, take it. The easier you make it to stay disciplined, the more likely you’ll achieve your goals.
Originally posted at: http://www.learningmarkets.com
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