web analytics

Q&A

The Investing Frequently Asked Questions Issue

May 28, 2010
By
The Investing Frequently Asked Questions Issue

Every few months I like to put together a frequently asked questions issue of Cabot Wealth Advisory, and I try to do it at a time when the market is even more confusing, volatile and frustrating than normal. So now is the perfect time! I’m attempting to hit on a few common questions (and, usually, misperceptions) that can help you better understand how the market actually works, which, in turn, will help you make (and keep) more of your money. Some of the questions are market-based, some pertain to individual stocks, but all of them should help you become...

Read more »

Answering Readers’ Survey Questions

February 27, 2009
By

Two weeks ago, many of our Cabot Wealth Advisory readers kindly filled out a survey and, in doing so, asked several great investing questions, some of which I’m going to tackle today. Please feel free to send us any other questions, comments or suggestions you might have in the comments section below. Question: What are some low-risk strategies that I can employ during a market downturn? Answer: At Cabot, most of our editors practice a system of growth investing that uses market timing to determine when to stay in the market and when to get out. So our advice...

Read more »

The Lowdown on Value Investing

February 4, 2009
By
The Lowdown on Value Investing

Today I’m bringing you a Q&A with Cabot Benjamin Graham Value Letter Editor J. Royden Ward. You haven’t heard from him in a while, so I wanted to bring you up to speed on his latest thinking about what happened in 2008 and where he sees the stock market and value stocks headed in 2009 and beyond. But first, a little background … Cabot Benjamin Graham Value Letter, launched in 2003, uses the teachings of Benjamin Graham, the father of value investing, in a system that safely builds long-lasting wealth. Unlike Cabot’s growth publications, the letter doesn’t use market...

Read more »

How to Take Advantage of the Next Bull Market

November 3, 2008
By

Here’s another question I received recently. Again, feel free send us any questions you have and keep checking back to see them get answered. Question: I’ve waited patiently for a new bull market.  Once it arrives, what’s the best way to take advantage of it?  Should I become fully invested immediately?  Buy leveraged ETFs?  A mixture of both? Answer: There is no one perfect way to play the market … but the key is to have a game plan going in.  For my part, I’m a big fan of taking things slow. I know most investors, especially if they’ve...

Read more »

Short Stocks in This Market?

November 3, 2008
By

Here’s another question I received recently. Again, feel free send us any questions you have and keep checking back to see them get answered. Question: What are some prudent ways of shorting stocks if this downtrend continues? Answer: Shorting is more difficult than buying for one main reason–fear is a more intense emotion than greed, and thus, drops tend to happen more quickly than rises.  That means your timing on short sales must be more precise than your timing on long investments. Still, shorting can be done profitably.  The keys are: To short past leaders that had huge upmoves,...

Read more »