Topic: How To Invest

What is Pat’s commentary for the week of May 16, 2017

Article Excerpt

Dear Inner Circle Member, One of our three key rules for stock market success is to downplay or avoid stocks that are in the broker/media limelight. The problem with stocks in the limelight is that investors tend to build up excessive expectations for them. When stocks fail to live up to these high expectations, as always happens eventually, declines can be swift and brutal. In fact, by the time a stock makes it into the limelight, its next big disappointment may already be overdue. The same risk applies to ideas As we’ve pointed out, this same caveat applies to investment ideas, indicators and theories. When ideas are in the limelight, they can attract excessive amounts of investment capital. This can lead investors to bid up stock prices in related fields. It can also indirectly undermine the management of companies in these fields. After all, if the business outlook is so bright that brokers and the media see fit to shine the limelight on it,…