How to Make Money in Stocks
If you ask the average person how to make money in stocks, you will likely hear answers such as “read the news” or “do research”, etc. The reality is that having an investment process governed by patience and discipline is the most important factor that will enable investment success. In order to be patient and disciplined, we must operate with self-confidence, which is only possible if we know what our investments are, why we own them, and the rules that govern their management. Our goal is to enable clients to invest with self-confidence by providing a predictable and repeatable investment process.
After last week’s quick reset in stock prices, the LPAM Tactical Opportunity rebounded with vigor, with many stocks back to new highs and the portfolio advancing +49.64% in 2020. Last week is a great example of how a disciplined investment process can help increase self-confidence and ignore the value of destroying media noise that hits our ears on a daily basis. In this week’s market update, we focus on liquidity, interest rates, and investor sentiment; the three horsemen of the stock market.
Specifically, we are going to conduct a quick performance review, along with an overview of the factors driving results so far in 2020. We are also going to look at overall stock market breadth to see if the recent rally is expanding or narrowing. Then we will assess the state of the economic recovery by simply looking at charts to see if the recovery looks like a V, a U, or any other oft-spoken shape. Lastly, we are going to walk through the importance of stock picking by illustrating how the market effectively discriminates between winners and losers and will take a look at an important development in the volatility market this week.
The information here is presented by licensed professionals and not specific to any individual’s personal circumstances. Investment advisory services offered through LifePro Asset Management, LLC, a registered investment adviser. Investments involve risk and are not guaranteed. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy will be profitable or equal any historical performance. Discussion of any specific stocks are based on objective, non-performance criteria and such discussion neither serves as a recommendation nor as the receipt of, or a substitute for, personalized advice. Due to various factors, including changing market conditions, such discussion of positions and/or recommendations may no longer be reflective of current position(s) and/or recommendation(s). Moreover, no client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from Advisor, or from any other investment professional. Forward-looking statements such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” are based on management’s views and assumptions at the time such statements were originally made and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. LifePro Asset Management does not undertake any obligation to correct or update any forward-looking statements on the LPAM Site.
