Saturday, January 28, 2012

Don’t Buy a Home OR Home Builder Stocks! Says Schoenberger

The housing sector was hit with a major setback in the latest new home sales data released on Thursday. The most recent snapshot showed sales slid 2.2% last month compared to November. December's weakness dragged on the entire year, making 2011 the weakest on record for sales of new homes in the U.S., and prices dropped 12.8% year-over-year.

Home Builder Stocks Under Pressure After Weak New Home Sales

Meanwhile, home builder stocks (XHB), a sector up 12% so far in 2012, took a hit on this data, raising questions about the validity of their year-to-date rally. Stocks like Lennar (LEN), Ryland (RYL), D.R. Horton (DHI), Pulte (PHM), and Toll Brothers (TOL) all pulled back roughly 2-3% on the data.

According to Todd Schoenberger, managing director at LandColt Trading, you shouldn't have touched these home builder stocks anyway. He explains in the attached video why the fundamentals of the housing market are still too broken to consider investing in the sector through home building stocks, and through traditional home ownership for that matter.

Schoenberger points to the U.S. homeownership rate which is currently at 66%. He believes this is too high, especially compared it to the historical average of 64%.

"You still have too many people that own homes that should not be owning a home right now," he says. "Those are your toxic mortgages that you hear about."

Is Now a Good Time to Buy a Home?

Combine this with excess supply on the market and historically low 30-year fixed mortgage rates, and you only see Schoenberger's case grow stronger. He sees oversupply creating further home price depreciation and mortgage rates that will only move lower.

"So why would you go out now to buy a home?" he asks Jeff Macke. "You can buy probably the same home a year or two from now with a 20% discount with a cheaper mortgage rate… And as a result of that thesis, that is why you want to stay away from home builders."

Simple, straightforward, and gloomy. So when will the housing depression begin to turn around?

Schoenberger turns to Fed Chairman Ben Bernanke as his magic 8-ball. Last August, Bernanke & Co. announced that the federal funds rate would remain near zero through mid-2013. However, just Wednesday the Fed updated that outlook, extending the time line out through late 2014.

Thus, Schoenberger's bottom line prediction: "Spring of 2014 will be the time that you would start to consider to buy a home," says Schoenberger.

The 10 Rules For Your Emergency Food Pantry

Those of you who plan to take the first steps toward preparing for emergencies may feel a bit overwhelmed at where to begin. After all, there is a lot of food to choose from at the grocery stores. Many websites, including this one encourage families to start buying small amounts of food related preparedness items each time they go shopping. This way, your budget is not dramatically affected.

Food storage calculators are a great tool to incorporate in your preparedness planning, and can help you understand how much food your family will need for a given emergency. The food storage calculations can also be printed out and used as an inventory list to keep you on track in terms of what preparedness supplies you have and will need.

To make the most of your emergency food supply, keep these essential food pantry rules in mind before purchasing:

  1. Caloric intake is an important factor in survival. In any disaster situation, you want to avoid malnutrition. Having foods stored to prevent this health issue will keep you at your optimum health. Stock up on foods that provide you with essential nutrients to maintain body functions, proteins and carbohydrates, fats for energy, as well as foods that are not high in salt (the more salty your food is, the more water you will drink). To calculate how many calories you will need in your diet, click here.
  2. Consider buying multifunctional food items. Items that can serve more than one purpose will help your finances, as well as save precious space in the food storage pantry. Items such as oats, pasta, rice, wheat and beans are some great low-cost foods will serve a variety of uses.
  3. Store high energy snacks to help boost energy levels. Eating snacks that are high in complex carbohydrates and protein will provide you with a guaranteed energy boost. High energy snacks such as nuts, peanut butter, crackers, granola bars and trail mix can be stored for up to 1 year and will help keep energy levels and spirits high in an emergency scenario.
  4. Bring on the protein! Protein is an essential ingredient in our daily diets and cannot be omitted out of a survival diet. Canned meat is a good source of protein and can also help you maintain your energy level. Meats such as tuna, ham, chicken and spam are great additions to the food pantry and are multifunctional. (Remember, the oil in canned meat can be used as an emergency candle.) Beans are another great source of protein, and when beans are accompanied with rice, it makes a complete protein which provides all the amino acids needed to survive. One serving of beans and rice provides 19.9 g, or 40 percent of your daily vitamins.
  5. Don’t forget the basics. Essential staples such as cooking oil, flour, cornmeal, salt, sugar, spices, baking soda, baking powder and vinegar should not be overlooked. If they are present in your kitchen, they should likewise be present in the emergency food supply.
  6. Convenience helps in stressful situations. Many moms know that boxed dinners can be a lifesaver when you are in a time crunch. Having some pre-packaged dinners and meals-to-grab during emergency scenarios will help you begin acclimating yourself to cooking in a grid down scenario as well as can help provide some comfort at the same time. Personally speaking, my family has the “just add water” pancake mixes, corn breads and drink mixes that are a great convenience.
  7. Variety’s the very spice of life, that gives it all it’s pleasure. Variety in your food pantry is important and can prevent the monotony that comes with eating the same foods day in and day out. Having a well rounded food storage will cut down on culinary boredom, as well as balance your diet. Further, stocking up on a variety of spices will also enhance your food pantry.
  8. Find comfort in the little things. Have some comfort food items that provide enjoyment to the family. Items such as popcorn, sweet cereals, hard candy, juice boxes, pickles, applesauce, pudding, cookies could be a great way to provide a bit of normalcy to the emergency situation you may face.
  9. Have backs up for your backs ups. Compressed food bars are lightweight, taste good and are nutritious. Having food bars as a back up to your existing food supply can provide you with peace of mind knowing you have an alternative to turn to if you run out of food. Further, these are great additions to your 72-hour bag or bug out vehicle. A review of the different types of bars can be read here or you can practice your survival skills and make your own with this recipe. MRE’s are another alternative food choice to turn to if you happen to run out of food in your pantry. Although many have turned their nose up at MRE’s (due to their high amounts of preservatives), they will provide you with sufficient calories and nutrition when it counts. Note: These should not be the only items in your food supply. Over time, you could become nutrient and vitamin deficient.
  10. Rotate and resupply when needed. Any items bought for the food storage closet should be used, rotated and resupplied. This is the best way to have the freshest foods available in the event that a disaster occurs. When organizing food reserves place the item that has the earliest expiration date in the front so that it is used first. FIFO is a well known acronym used in the restaurant business that stands for, “First In, First Out,” and can be incorporated in your food storage endeavors. Do an inventory check every 6 months to make sure that canned goods, preserves and other storage items are within their expiration dates.

Keeping the above considerations in mind when purchasing your food supply will provide your family with a well rounded food pantry stocked with an array of foods that will assist in promoting a healthy diet. Not listed in the suggestions is water. You must have water to survive. To learn more about potable water, click here. It would be prudent to have a 2-week supply of water on hand, as well as a water filtration device to rely on for extended disasters.

Prepping is a passion for some. For others it is the most efficient way to keep their family as safe as possible. For further resources and a list of essential items for your emergency supply, click here.

Is Now The Time To Move Away From Major U.S. Cities?

As the U.S. economy falls apart and as the world becomes increasingly unstable, more Americans than ever are becoming "preppers". It is estimated that there are at least two million preppers in the United States today, but nobody really knows. The truth is that it is hard to take a poll because a lot of preppers simply do not talk about their preparations. Your neighbor could be storing up food in the garage or in an extra bedroom and you might never even know it. An increasing number of Americans are convinced that we are on the verge of some really bad things happening. But will just storing up some extra food and supplies be enough? What is going to happen if we see widespread rioting in major U.S. cities like George Soros is predicting? What is going to happen if the economy totally falls to pieces and our city centers descend into anarchy like we saw in New Orleans during the aftermath of Hurricane Katrina? In some major U.S. cities such as Detroit, looting is already rampant. There are some sections of Detroit where entire blocks of houses are being slowly dismantled by thieves and stripped of anything valuable. Sadly, the economy is going to get a lot worse than it is at the moment. So is now the time to move away from major U.S. cities? Should preppers be seeking safer locations for themselves and their families? Those are legitimate questions.

According to a recent Gallup poll, satisfaction with the government is now at an all-time low. Americans are rapidly losing faith in virtually every major institution in society.

Anger and frustration are rising to very dangerous levels, and we are rapidly approaching a boiling point.

When people feel as though they have lost everything, they get desperate.

And desperate people do desperate things.

In many communities in the United States today, crime has become so terrifying that people are literally sleeping with their guns.

The following is a story from Rancho Cordova, California that one of my readers recently sent me.... (more)

George Soros Shares His View on Europe

What the Bond Market Knows That You Don’t

by Matt Tucker, iShares

A picture is worth a thousand words:

Equity Performance vs. Bond Yields

Source: Bloomberg (1/13/11-1/16/12)

On the back of improving US economic data, equities have rallied off of autumn lows, and yet US Treasury yields have continued to surf bottom with the 10-year note trading below 2% for the first time on record. Why haven’t interest rates recovered in support of improving data? Do US Treasury investors know something that equity investors don’t?

The answer may lie across the pond in Europe. The European crisis intensified significantly in the fall, causing equity markets (and most risky assets for that matter) to sell off and US Treasury rates to fall, despite the August downgrade.

The chart below shows the on-the-run credit default swap contract for a basket of European sovereign credits, including the peripheral countries. As the chart shows, spreads widened significantly in late summer / early fall and have yet to recede meaningfully, despite grinding progress on the political front and some prominent actions by the European Central Bank to stabilize liquidity.

Source: Bloomberg

While the United States certainly has well publicized fiscal problems, it is, as our colleague Jeff Rosenberg of BlackRock Fundamental Fixed Income states, “the best house in a bad neighborhood.” To this point, Russ Koesterich estimates that the fair level of rates for the US Treasury 10-year yield based upon historical economic relationships is around 2.5-3%. The current yield of ~1.85% essentially reflects a liquidity or “safety” premium that investors are willing to pay in order to have relative safety in the neighborhood (protection money, if you will). Additionally, the Fed continues with Operation Twist, which is intentionally designed to keep a lid on longer term US Treasury rates (in response to concerns that the European overhang could damage the fragile US recovery).

How long will US Treasuries stay at this level, and will they eventually move up to reflect tentatively improving economic conditions in the United States? It all depends upon Europe. If the European situation deteriorates from here, US equities will almost certainly retreat, and US Treasury investors will look justified in having accepted a low yield, since it was low in anticipation of this risk. In that situation, US Treasury yields could move even lower.

If Europe claws its way out of the worst potential outcome and gets to a point of relative stability, the liquidity premium in US Treasuries will likely dissipate and yields may move to more fundamentally justified levels. But for now, it does appear that bond market and equity market investors are making very different bets.

Natural Gas Prices Up: Is There Still Time to Buy?

Natural gas has gotten a much needed boost over the last couple weeks, rising over 15% after a catastrophic drop in the last year. The rally came in reaction to Chesapeake Energy's (CHK) announcement that it was cutting capital expenditures by more than 2/3's from last year, suggesting lower supplies. In addition, President Obama suggested in his State of the Union address that he'd seek to use more natural gas as a bridge between crude and renewables, suggesting stronger demand.

As econ 101 taught us: less supply + more demand = higher prices. So what's the trade now that the tape has digested these news items and rallied sharply?

Rich Ilczyszyn, founder of likes natural gas here and suggests the U.S. Natural Gas fund (UNG) as a way for retail investors to play. "UNG is definitely something I'd take a look at here," he says in the attached clip, and offers two bullish catalysts to support the idea:

1. The huge downtrend has been accompanied by massive shorts. When shorts are forced to cover it "scoots the market up," as Ilczyszyn puts it, leading to gains building on gains, particularly when there's a fundamental basis for the move.

2. It's a relatively low-risk trade, in his view.

Those who've been long natural gas over the last few years may take issue here. To be clea, Ilczyszyn isn't saying there isn't danger that the perennial "next big thing" can't continue it's trend lower, just that natural gas isn't going to go to zero, and sees your downside risk that $2.

Ilczyszyn is targeting a move into the $3's and possible as high as $4/btu. As he says, the days of natural gas in the teens may be over but it's not going below $2. In what remains a somewhat dodgy market in the big picture a potential move greater than 30% is nothing to sneeze at.

Trading The MACD Divergence

Moving average convergence divergence (MACD), invented in 1979 by Gerald Appeal, is one of the most popular technical indicators in trading. The MACD is appreciated by traders the world over for its simplicity and flexibility because it can be used either as a trend or momentum indicator.

Trading divergence is a popular way to use the MACD histogram (which we explain below), but, unfortunately, the divergence trade is not very accurate - it fails more than it succeeds. To explore what may be a more logical method of trading the MACD divergence, we look at using the MACD histogram for both trade entry and trade exit signals (instead of only entry), and how currency traders are uniquely positioned to take advantage of such a strategy.

MACD: An Overview
The concept behind the MACD is fairly straightforward. Essentially, it calculates the difference between an instrument's 26-day and 12-day exponential moving averages (EMA). Of the two moving averages that make up the MACD, the 12-day EMA is obviously the faster one, while the 26-day is slower. In the calculation of their values, both moving averages use the closing prices of whatever period is measured. On the MACD chart, a nine-day EMA of the MACD itself is plotted as well, and it acts as a trigger for buy and sell decisions. The MACD generates a bullish signal when it moves above its own nine-day EMA, and it sends a sell sign when it moves below its nine-day EMA.

The MACD histogram is an elegant visual representation of the difference between the MACD and its nine-day EMA. The histogram is positive when the MACD is above its nine-day EMA and negative when the MACD is below its nine-day EMA. If prices are rising, the histogram grows larger as the speed of the price movement accelerates, and contracts as price movement decelerates. The same principle works in reverse as prices are falling. See Figure 1 for a good example of a MACD histogram in action.

Figure 1: MACD histogram. As price action (top part of the screen) accelerates to the downside, the MACD histogram (in the lower part of the screen) makes new lows
Source: FXTrek Intellicharts

The MACD histogram is the main reason why so many traders rely on this indicator to measure momentum, because it responds to the speed of price movement. Indeed, most traders use the MACD indicator more frequently to gauge the strength of the price move than to determine the direction of a trend.
Trading Divergence
As we mentioned earlier, trading divergence is a classic way in which the MACD histogram is used. One of the most common setups is to find chart points at which price makes a new swing high or a new swing low, but the MACD histogram does not, indicating a divergence between price and momentum. Figure 2 illustrates a typical divergence trade.

Figure 2: A typical (negative) divergence trade using a MACD histogram. At the right-hand circle on the price chart, the price movements make a new swing high, but at the corresponding circled point on the MACD histogram, the MACD histogram is unable to exceed its previous high of 0.3307. (The histogram reached this high at the point indicated by the lower left-hand circle.) The divergence is a signal that the price is about to reverse at the new high, and as such, it is a signal for the trader to enter into a short position.
Source: Source: FXTrek Intellicharts

Unfortunately, the divergence trade is not very accurate, as it fails more times than it succeeds. Prices frequently have several final bursts up or down that trigger stops and force traders out of position just before the move actually makes a sustained turn and the trade becomes profitable. Figure 3 demonstrates a typical divergence fakeout, which has frustrated scores of traders over the years.
Figure 3: A typical divergence fakeout. Strong divergence is illustrated by the right circle (at the bottom of the chart) by the vertical line, but traders who set their stops at swing highs would have been taken out of the trade before it turned in their direction.
Source: Source: FXTrek Intellicharts

One of the reasons that traders often lose with this set up is they enter a trade on a signal from the MACD indicator but exit it based on the move in price. Since the MACD histogram is a derivative of price and is not price itself, this approach is, in effect, the trading version of mixing apples and oranges.

Using the MACD Histogram for Both Entry and Exit

To resolve the inconsistency between entry and exit, a trader can use the MACD histogram for both trade entry and trade exit signals. To do so, the trader trading the negative divergence takes a partial short position at the initial point of divergence, but instead of setting the stop at the nearest swing high based on price, he or she instead stops out the trade only if the high of the MACD histogram exceeds its previous swing high, indicating that momentum is actually accelerating and the trader is truly wrong on the trade. If, on the other hand, the MACD histogram does not generate a new swing high, the trader then adds to his or her initial position, continually achieving a higher average price for the short.

Currency traders are uniquely positioned to take advantage of this strategy because with this strategy, the larger the position, the larger the potential gains once the price reverses - and in Forex (FX), you can implement this strategy with any size of position and not have to worry about influencing price. (Traders can execute transactions as large as 100,000 units or as little as 1,000 units for the same typical spread of three to five points in the major pairs.)

In effect, this strategy requires the trader to average up as prices temporarily move against him or her. This, however, is typically not considered a good strategy. Many trading books have derisively dubbed such a technique as "adding to your losers." However, in this case the trader has a logical reason for doing so - the MACD histogram has shown divergence, which indicates that momentum is waning and price may soon turn. In effect, the trader is trying to call the bluff between the seeming strength of immediate price action and the MACD readings that hint at weakness ahead. Still, a well-prepared trader using the advantages of fixed costs in FX, by properly averaging up the trade, can withstand the temporary drawdowns until price turns in his or her favor. Figure 4 illustrates this strategy in action.

Figure 4: The chart indicates where price makes successive highs but the MACD histogram does not - foreshadowing the decline that eventually comes. By averaging up his or her short, the trader eventually earns a handsome profit as we see the price making a sustained reversal after the final point of divergence.
Source: Source: FXTrek Intellicharts

The Bottom Line
Like life, trading is rarely black and white. Some rules that traders agree on blindly, such as never adding to a loser, can be successfully broken to achieve extraordinary profits. However, a logical, methodical approach for violating these important money management rules needs to be established before attempting to capture gains. In the case of the MACD histogram, trading the indicator instead of the price offers a new way to trade an old idea - divergence. Applying this method to the FX market, which allows effortless scaling up of positions, makes this idea even more intriguing to day traders and position traders alike.

Ellis Martin Report With JSMineset Co-Founder David Duval

James Dines: Gold to Challenge Last Year’s Highs in 2012 on the Way to $3,000 oz. and Beyond

James Dines

Jim is pleased to welcome back James Dines of The Dines Letter to discuss his forecast for 2012. In an interview covering many subjects, Mr. Dines believes gold shares will catch up to the gold price, Chinese growth won’t be enough to bail out the world’s economies, and that nothing will save the world until a currency link to gold is reinstated and enforced.

Stocks That Benefit From A Weak Dollar : COP, KBR, TCK, XOM

There's a lot of talk today about the future of the dollar. If left unchecked or without an appropriate exit strategy, our massive stimulus programs will have a crippling effect on the value of the dollar. It's simple economics: if you increase supply without a similar increase in demand, the price of your product drops.

What to Consider
Exporters benefit when their home currency weakens relative to the rest of the world because their trading partners can now buy their product for less. This is why China's currency has been undervalued for years. The Chinese government does not let the yuan float freely, which leads many to cite that as the reason China's exports are so incredibly cheap.

Oil and gold also benefit from a weak dollar. Gold is often perceived as a safe haven during periods of asset devaluation. Oil benefits because it's priced in dollars. As we've seen with the oil price over the past few months, that indeed seems to be the case.

Quality Always Matters
So commodity businesses that have pricing power and U.S. companies that do brisk business abroad benefit from a weaker dollar. But let me go on record as saying over the long run, it's not beneficial for a country to continually suffer from a weak currency. In the case of the U.S., that rings even more true since the greenback is regarded as the world's premier currency.

Nonetheless, major oil companies like ConocoPhillips (NYSE:COP) and ExxonMobil (NYSE:XOM) that have substantial operations abroad will be OK. And since a weak dollar also benefits the price of oil, the majors doubly benefit. Construction and engineering firm KBR (NYSE:KBR), a virtually debt-free $4.8 billion company, does a bulk of its work overseas. And because the bulk of KBR's work comes from government agencies, the company continues to prosper as best as one can during a recession.

Foreign Investing
Another option is investing in businesses located outside the U.S. that earn money in other currencies that are likely to strengthen against the U.S. dollar. But such a move poses some risk because the other currency must appreciate and the company needs to maintain its profitability. So while the Japanese yen has gotten stronger against the greenback lately, many Japanese businesses have a tough time of it.

Nations like Brazil and Australia, which are rich in commodities, are expected to resume a healthy GDP going forward. Up north in Canada, you have commodity giant Teck Resources (NYSE:TCK), which does business all over the world and has the Canadian dollar as the functional currency.

Bottom Line
It's never wise to make any investment based solely on a single macro bet, especially if the prices aren't bargains. But if the dollar does weaken long-term, then businesses with characteristics like those above will benefit.

The Key To High Returns Is A Disciplined Strategy

Having a disciplined investment strategy differentiates the professional from the do-it-yourself investor. An investment strategy does not have to be complicated. If you were to sum up Warren Buffett's investing strategy it might be to "buy good businesses at a fair price with the intention of holding them forever." An investment strategy helps provide focus and ensures emotions are held in check when making decisions. Having an investment strategy for both asset mix and security will provide discipline to be a successful investor over the long term. In this article, we will look at different investment strategies and how you can pick the right one for you.

Strategic Asset Mix
Central to any investment plan is the strategic or long-term asset mix. In general, its purpose is to capture the benefits of diversification and the advantages of investing in assets that have a low correlation to each other. The strategic asset mix is essentially the link between your long-term investment goals and the capital markets.

Many investors want to keep the current asset mix of their portfolios close to their strategic asset mix. A simple rebalancing strategy is all that is required. Typically, as each asset class will perform differently over time, the asset mix will deviate from the strategic asset mix.

For example, a balanced portfolio of 60% equity and 40% fixed income could become 70% equity and 30% fixed income after a strong stock market. Rebalancing would require selling equities and using the proceeds to buy fixed-income assets, so the asset mix then will get back to the long-term asset mix. The rebalancing could be done on a regular basis, semiannually, annually or when an asset class deviates by a set percentage.

A rebalancing strategy is effectively a sell high, buy low strategy, because it will always sell the assets that have been the best relative performers and buy the assets with relatively weak performance.

Tactical Asset Allocation
A tactical asset mix strategy attempts to add value by overweighting the asset classes that are expected to outperform, and underweighting those asset classes that are expected to underperform.

As an example, if an investor believes that over the next year the U.S. equities market will be weak, the investor might decide to underweight his exposure to equities and overweight cash or bonds. Unlike a rebalancing strategy, which is mechanical, tactical asset allocation requires some forecasting ability to make the correct decisions.

Security Selection Strategies
There is no shortage of strategies to choose from when buying and selling stocks. Countless books have been written describing many strategies in detail. Strategies range from growth, to value and momentum. There are fundamentally based strategies, as well as technical or quantitative strategies. There are also top-down and bottom-up strategies.

Each type of strategy will have its proponents, but any logical, rational strategy that is followed consistently is always better than no strategy at all. The value is in the disciplined approach a strategy provides.

Developing Your Strategy
The value of an investing strategy is not in the strategy itself, but in how it is followed and implemented.

In investing, there are two different approaches: a top-down or a bottom-up approach. In a top-down approach, the investor analyzes the major factors that will influence the capital market and the companies in it. The main factors will be the overall economy, monetary and fiscal policy, demographic changes, inflation, industrial sector trends and interest rates. Other investors will take a bottom-up approach, analyzing individual companies, their financial statements, growth prospects and industry trends.

One approach is not necessarily better than the other. However, depending on your own interests, knowledge and experience, one approach might be more appropriate for you. As an example, an economist will likely take a top-down approach to investing and an accountant might feel more comfortable with a bottom-up approach. Your orientation to analyzing investments will determine the types of investment strategies to follow.

In addition, the amount of time you are able to commit to your investment program determines the type of strategies to use and how much of the investment decision-making you will delegate. For example, with limited time, an investor might build a portfolio using a few exchanged-traded funds (ETFs) and then rebalance once a year. Similarly, the investor might have all of their investments in a couple of balanced funds or have their funds managed by a discretionary money manager.

Information and knowledge are important to the success of any investment strategy. One should identify the sources of data, investment commentary or investment research. The biggest challenge as an investor is to be able to filter out truly useful information from the needless noise. A disciplined investment strategy forces you to focus on the information that is important for your decision-making process.

Delegating Decision Making
Recognize the fact that it is difficult to do it all when it comes to investing. If you have a well-diversified portfolio and you invest in the major assets classes - and maybe some of the sub-asset classes as well - you are not likely to be able to actively manage all your investments effectively, unless you have a lot of time to allocate. The question then becomes, what to do yourself and what to delegate to others. It is important to stick to your strengths and interests and delegate out the asset classes in which you have a limited expertise.

As an example, an investor might feel confident trading large cap value stocks. As such, this person should concentrate their efforts on that asset class and delegate the investment management of other asset classes to someone else. Investors have several choices here, including active or passive management of the funds or assets they are looking to delegate. From the passive management side, you can find an advisor to handle the areas that you have little time to manage or research; you could also purchase a mutual fund or an ETF that provides exposure to these areas.

The Bottom Line
Having an investment strategy for both asset mix and security selection is important to ensure consistent success as an investor. Having the discipline to follow an investment strategy is more important than the actual strategy chosen. Equally important to any strategy, is determining what to manage yourself and what to delegate to others.