Topic: How To Invest

What is Pat’s commentary for the week of March 28, 2017

Article Excerpt

Dear Inner Circle Member, As you know, one of the three key points to our Successful Investor strategy is that you need to downplay or avoid stocks in the broker/media limelight. A similar warning applies to investment-related ideas. Just to refresh your memory: we advise you to downplay or avoid stocks in the limelight because the limelight distorts investment quality. Brokers and the media choose stocks to focus that suit their purposes, not yours. Brokers want to generate commissions and fees, and attract new clients. They focus on stocks with big plans that can spur investors to buy. If those big plans require new financing, so much the better, since financing and underwriting generates much higher profits that brokerage transactions. The media rely on brokers for information and analysis that they use to attract pageviews and subscribers, which can pay off in higher advertising revenue. Members of the media have better communications skills than brokers, but less time and less expertise for analysis. When…