Topic: How To Invest

What is Pat’s commentary for the week of June 27, 2017

Article Excerpt

Dear Inner Circle Member, Many investors like to describe a particular investment approach by sticking a one-word label on it. For instance, you’ll hear people say things like, “My broker’s a value guy, so I’m really suffering in this Trump Trade market.” This can make conversation flow more smoothly, but it does little to raise anybody’s investment knowledge. In fact, it can lead to false impressions. Three of the most common one-word labels are growth, value and momentum. You’ll find signs of all three in a successful investor’s portfolio. But going to extremes with any single one hurt your profits. Of course, you need a growth element in your portfolio. Profits from successful growth investments can offset the drain of disappointing stocks, which are inevitable in any portfolio. But too much focus on growth can lead you to buy stocks that are in the broker/media limelight. Many of these stocks need huge profit gains to justify their current stock prices, let alone move…