I wrote this post for new investors that may be risk-averse.
If you’re like me, you have a high tolerance for risk. You will have a portfolio that consists of companies on the cusp of innovative disruption. These companies’ stock prices tends to be quite volatile. You could be up 200%, and then give back more than half in weeks.
That kind of price movement may not sit well with some investors. If you fall in this category that’s fine, because I have a suggestion for you: Clorox!
Now, I am a believer that many old-line companies are in big trouble. They’re simply not moving fast enough to remain competitive. However, Clorox (NYSE: CLX) is unique. I believe they will continue to outperform the market for many years to come.
Clorox makes products that we must have on a daily or weekly basis, and that’s simply not going away. Consider the brands they own:
1. Clorox Wipes
2. Clorox Bleach
3. Hidden Valley Salad Dressing
5. Burt’s Bees
7. Brita Water Filters
8. Kingsford Charcoal
9. Fresh Step Cat Litter
I think you could sleep at night if you owned these brand names. You’re not going to set the world on fire in the way you would if you owned an Amazon or a Netflix, but that might not be your style.
That’s why I believe Clorox is a good choice for risk-averse investors.
Disclaimer/Disclosure Statement: Information in this article is not intended to be a recommendation to invest in any stock. Rather, it is presented for readers’ education and consideration when making their own investment decisions. The author has no position in any of the companies mentioned.
Almost anyone could benefit from receiving a copy of The Stock Market is For Everyone as a gift, because we all should have financial freedom as we advance through life.
At 24 pages, it’s a quick, easy read – and it gives you the basic information you need to know to get started right then and there. No jargon, no unnecessary terminology. Start with as little as $25.00, develop an investing habit that sticks for life, and watch your wealth grow.
Who will you share the gift of knowledge with this Christmas?
Photo: Eve Livesey.
“Are we in a bear market?”
“What should I do if we’re in a bear market?”
As the end of the year approaches, you will start to see many financial newsletters calling for a bear market in 2019…especially considering the way the second half of this year has gone.
Throw in the potential Fed rate hikes, as well as the trade spat with China (reportedly resolved as of yesterday, but who knows?), and you have a recipe for a recession – which could lead to a bear market.
The truth of the matter is that no one knows for sure as to what next year will bring. I wouldn’t be surprised to see the market continue to move higher, and a bear market wouldn’t shock me either.
The last bear market we had was between 2008 and 2009. It lasted for 15 months. Since the 1930s, the U.S. stock market has had eight bear markets, lasting 1.4 years on average.
So what should you do if there’s a bear market?
It depends. If you need your money in the next three years, you should probably take it out of the market. If this year has taught you anything, it’s that you never know when a market sell-off is going to happen.
If your time frame is more long-term, which I hope is the case, then do nothing. If you are a regular investor, and you have a fixed amount that you invest each month, then continue to do so. If we have a bear market, you will have bought stocks at some very good prices. Do not listen to the pundits that tell people to jump in and out of the market because they believe a bear market is coming. I said it before and I’ll say it again: it is impossible to successfully time the market.
We here at Wealthy Joe are long-term investors. We don’t let a sell-off or bear market scare us out of owning great businesses for the long term.
The Stock Market is For Everyone is available on Amazon in paperback format for $9.99 and as an ebook for $3.99.
On August 21 of this year, I wrote a post titled “Buy Growth and Hold It”.
We took a small amount of money generated by my beginners’ investment handbook, The Stock Market Is For Everyone, and purchased one share of a company called The Trade Desk (NASDAQ: TTD) for $48.20.
The purpose of this investment was to demonstrate the potential returns available from investing in young companies with tremendous long-term potential.
At the time I wrote the post, back in August, TTD was up 165.58% from where we purchased it, which was phenomenal!
I wanted to follow up today on that investment, so readers can see how the stock has fared after the big sell-off we’ve had…
As of this writing TTD is up 195% from where we purchased it. By any measure, that is a great return!
Our game plan is to hold onto it and potentially add to the position as soon as we can.
Remember…buy growth and continue to hold! Always remember this when deciding what stock to buy.
I’ve shared this graphic by Morgan Housel of The Motley Fool here before. I’m featuring it again today because it is very relevant to the current market situation.
Hold on and be patient. History demonstrates it will pay off.
So far, in my “Birthday Bonanza” series, I’ve discussed:
Now, it’s time to take action.
If you have $1000 ready to open your child’s investment account, great!
Saving a thousand dollars, though, is a very challenging task for some. This includes married couples and single parents alike.
However, there are a number of ways to come up with the money.
Here are some ideas:
1) Use your income tax refund to fund your child’s investment account.
2) Save $83 per month for 12 months. The goal of saving for your child’s future should be more than enough motivation to do so!
3) Work a second job, or start a side business, with the purpose of using the first $1000 in profit to fund your child’s investment account.
4) If you are so financially strapped that you can only put $25 a month aside, then put $25 a month aside! Some money is far better than no money.
I’m sure that many of you have income-generating and/or money-saving ideas to share. Please don’t be shy! Tell us about them in the comments section here, or on my Facebook, Twitter or LinkedIn page.
In the next installment, you’re going to open your account!