How To Beat These Billionaire Hedge Fund Managers

Posted on by The INO.com Team

If beating the billionaire hedge fund mangers seems like a dream to you, then I am about to give you a reality check. Before I go there, let me share with you some of the results of these billionaire hedge fund managers this year. I'm only going to give you the top three, as they have achieved outstanding results.

Let's start off with the number one hedge fund manager of the year. I'm sure you're familiar with this name, as it seems to be in the news every week. I'm talking about Carl Icahn. Icahn has produced an incredible return of 48.96% year-to-date. That truly is an amazing return, but he's not alone. Next up is David Einhorn with a return of 41.37% YTD. Bringing up the rear with a very impressive 27.95% return YTD is Bill Ackman.

I think we can all agree that these three brilliant billionaire fund managers have all produced outstanding returns so far this year. I congratulate all three hedge fund managers. It's even more remarkable when you consider that the stock market hasn't had much sustained movement to the upside this year. In fact, just recently most of the major indices were flat to lower on the year.

This leads me to the main lesson at hand... with the right tools you can surpass the returns of these hedge fund all-stars. Continue reading "How To Beat These Billionaire Hedge Fund Managers" →

In The Week Ahead: No Clear Sign Of A Market Bottom

Posted on by admin

All major U.S. stock indices finished in the red again last week except for the Russell 2000, which gained 2.8%, reversing the pattern that we have seen for most of this year where small-cap stocks lag the market. This emerging strength in small caps may be a good sign for the market between now and year end. But, for now, the broad market SP 500, blue-chip Dow industrials and tech bellwether Nasdaq 100 are all negative for 2014 with no clear sign of a bottom in sight.

All sectors of the SP 500 posted losses last week except for industrials, materials and utilities. One potential bright spot is that my own ETF-based metric shows the biggest inflow of investor assets last week went into energy. Should this continue, it may be a leading indication of a fourth-quarter buying opportunity in this downtrodden sector. Stay tuned.

Keep Your Eyes Focused on Europe

In last week's Market Outlook, I discussed a bearish head-and-shoulders formation in Germany's DAX index that targeted an additional 11% decline to 7,800. I said the positive long-term correlation between the DAX and the SP 500 implied that the broader U.S. market may also be vulnerable to more weakness.

Despite last week's modest rebound, the 7,800 downside target remains valid as long as the March 14 and Aug. 8 lows near 8,913 loosely contain the index on the upside.

The next chart shows the SPDR Dow Jones Industrial Average ETF (NYSE: DIA) broke down last week below the $165.51 support level that I first identified in the May 12 Market Outlook. The ETF has key resistance at $165.63 to $168.78, which contains the 200-day moving average (major trend proxy), the 50% and 61.8% Fibonacci retracements of the Sept. 19 decline, and the 50-day moving average (minor trend proxy). Continue reading "In The Week Ahead: No Clear Sign Of A Market Bottom" →

Will The Rally End?

Posted on by The INO.com Team

Will Friday's rally continue or was it just a "dead cat bounce"? There is no doubt about it, we have been seeing lots of volatility in the markets. Is it likely to continue? Like in the past, it will continue until it stops and the market settles down. Nobody can give you an exact timeline when that's going to happen, but it will happen. In the meantime, having a solid game plan, one that you know has been successful in the past, will lead you to successful trades.

You've heard me say this before, the market can only move three ways, it can go up, down and sideways, that's it! When you boil it down to those simple terms, it is easy to see how investors can create many of their own problems by over-thinking a situation. You may have been guilty of this yourself at some point in time, I know I have. It is so easy to get caught up with the hubris of the market and lose sight of your investment goals. It's also easy to fall into the trap of listening to too many talking heads. Oftentimes when this happens, it leads to confusion and will leave you in a state of paralysis. Continue reading "Will The Rally End?" →

4 Lessons From Buffett That Every Investor Needs To Know

Posted on by admin

By: Eric Winter of Street Authority

Behind each trade or investment, they are there... lurking, waiting to reveal themselves during a moment of weakness.

They are the four fears of investing.

I learned about these early into my trading career, and I've been a victim of each one over time. All drama aside, they affect every investor or trader who actively manages his or her own money.

In no particular order, the four fears are as follows:

1. Fear Of Loss
2. Fear Of Missing Out
3. Fear Of Letting A Profit Turn Into A Loss
4. Fear Of Being Wrong

Despite their prevalence, there are fortunately many methods to help conquer each of these fears. One of these tools comes from the long career and immortalized wisdom of the Oracle of Omaha himself.

While I can't be 100% sure what Warren Buffett would say in regard to each of these problems, we can use his bank of interview quotes and newsletter excerpts to infer what the billionaire would say about understanding and conquering each problem. Continue reading "4 Lessons From Buffett That Every Investor Needs To Know" →

Don't Get Ruined by These 10 Popular Investment Myths (Part IV)

Posted on by The INO.com Team

Interest rates, oil prices, earnings, GDP, wars, terrorist attacks, inflation, monetary policy, etc. -- NONE have a reliable effect on the stock market

By Elliott Wave International

You may remember that during the 2008-2009 financial crisis, many called into question traditional economic models.

Why did the traditional financial models fail? And more importantly, will they warn us of a new approaching doomsday, should there be one?

This series gives you a well-researched answer.

Here is Part IV; come back soon for Part V.

Myth #4: "Earnings drive stock prices."

By Robert Prechter (excerpted from the monthly Elliott Wave Theorist; published since 1979)

This belief powers the bulk of the research on Wall Street. Countless analysts try to forecast corporate earnings so they can forecast stock prices. The exogenous-cause [i.e., news-driven -- Ed.] basis for this research is quite clear: Continue reading "Don't Get Ruined by These 10 Popular Investment Myths (Part IV)" →