Monday, August 31, 2009

Investment Plans for the Rest of 2009

Perhaps I'm getting recession weary. I'm starting to think that the economic recovery will be slower and longer than current expectations. I believe the next couple months will be telling. Here's what I plan to do:

  • Wait until November before making significant investment changes. Historically, September and October have been volatile months, with September being the only month with a negative average return. I expect there will be a pull back during those months.

    For now, we will continue to maintain our investments in the managed accounts and our trading accounts, and only periodically take some profits.

  • Use call options to hedge against a big advance. If the market advances significantly, I will participate in some of the gain. If the market declines, I will only lose the call premium.

  • Focus on large cap growth companies. In a slow recovering economy, I believe large cap growth stocks will gain the most since they have the wherewithal to make it through the tough economic conditions. Thus, when the economic recovery takes offs, large cap growth companies will be among the survivors to benefit.

  • Buy into the next correction. When the market declines, I plan to buy from my latest stock buy list and my core stock holdings. In addition, I will start building a list of large cap growth stocks to consider.

  • If the market should move up, we are sufficiently invested to benefit. However, if the market should correct, as I believe it will, we are prepared to put some funds back into the market.

    For more on Strategies and Plans, check back every Monday for a new segment.

    This is not financial or investment advice. Please consult a professional advisor.

    Copyright © 2009 Achievement Catalyst, LLC

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