The Make a List, Check It Twice Issue
30 June 2014
Whither Your Watch List?
Have It Handy for Downturns
U.S. stocks have been strong through the first half of the year, and though no one has a crystal ball, every investment club should be prepared for a correction. The possibility of a market downturn is why it's important to continually maintain a watch list, according to ICLUBcentral president Doug Gerlach. Watch lists help you take advantage of such market changes by being ready with ideas for stocks to buy when prices suddenly improve.
Stocks typically placed on a watch list are dream holdings that seem out of reach because of their price, premium blue-chip stocks or those that have good quality but somewhat unrealistic prices. Stocks that look intriguing but lack enough history to warrant the club's confidence are also good ones to add to a watch list, Gerlach explained during a recent Investment Club Operations webinar. Keeping a watch list prepares a club to move quickly when opportunity strikes.
Part of the discipline of using a watch list properly is revisiting it regularly to make sure the fundamentals remain strong, dropping those that no longer meet your criteria. "Every investment club should have someone managing the watch list, which can be a potent source of idea-generation," Doug says. "Revisit these ideas regularly, so you're ready if the time is right to buy — as long as your research suggests it still has promise."
Use Toolkit 6 to create a watch list portfolio, listing companies on your dream list with zero shares and managing it with the portfolio summary report, Gerlach suggests. Or subscribe to MyStockProspector so that the club can identify stocks to study over the long term.
Market corrections can be painful, but for investors who are prepared, these are opportunities. "During bear markets, more wealth is made by those who can stay the course and use information available to them to make investments to your benefit," Gerlach says. The key is being ready with an up-to-date watch list. Click here to learn more by viewing our archived webinar with detailed tips.
Stay Inspired in July
No Summer Reruns for ICLUBcentral Webinars
The next Lunchtime Learning webinar is slated for 1:30 p.m. to 2:30 p.m. Eastern on Monday, July 14, during which ICLUBcentral's Doug Gerlach and his team will present an informative session packed with relevant news, trends and information about investing.
The next Investment Club Operations webinar is scheduled for 9 p.m. to 10 p.m. Eastern on Tuesday, July 15. Learn all the latest insights and tips on running a successful investment club. Whether you're a veteran or a newcomer, these sessions are full of information and guaranteed to inspire you. Bring your questions and get answers. Click here to register for upcoming webinars. Or view the archives.
Go West to The MoneyShow San Francisco
Easier Than Walking Up Filbert Street in August
The MoneyShow San Francisco, kicking off Aug. 21 for three days, will host ICLUBcentral president Doug Gerlach on Day 1 as he discusses his seven-step method for picking stocks. More than 50 financial experts are part of the lineup, with speakers providing their latest stock picks, current market outlooks and insights into successful investing strategies. Even better, registration is free.
On Aug. 23 ICLUBcentral CEO Kamie Zaracki will speak on mastering fundamental stock analysis in a clinic to help attendees better understand the investment ideas generated during The MoneyShow. Register now for The MoneyShow San Francisco at the Hilton Union Square.
TODAY'S ENTIRELY RELEVANT QUOTATION
"Even after five years of a spectacular bull market that has driven the S&P 500 up over 180%, irrational exuberance is nowhere in sight."
— Howard Gold, MarketWatch