Bearish Behavior: How To React When Your Portfolio Is Plunging

New investors are always fearful of bear markets and usually end up with suicidal thoughts when they discover their “hot stocks” have plummeted. More bearish days are coming our way, but there are a few ways you can protect yourself from losing so much in a bearish market.

Strategy

What is your investing strategy? Are you a Swing Trader, Day Trader or Buy-and-Hold Investor? If you actively trade, you cannot use the same strategy on bearish markets as you may do on bullish markets. Study chart trends and watch for resistance and support levels. Learn more about your investing style, don’t swing by what others are suggesting just because it’s a “hot stock” and they made an impressive profit.

What is your Risk-Tolerance?

Though you should have gotten this figured out before you started investing, determine how much your willing to lose. Perhaps you should balance your portfolio: create a stock/bond ratio or consider placing your funds in a managed fund. Keep in mind of the fees that are involved with (any) managed portfolios, yet this may save you the peace of mind when bearish markets come along. Growth may also be slower but look for consistency.

Education

There are many investors out there who love to show you how much they profited on bull markets, but few investors show you how much they have lost altogether. May I encourage you not be easily influenced on what appears to look good. When you buy or sell, you are doing it for some kind of gain and at the end of the day, it’s your money on the line. Be wise and educate yourself. There are also many books that provide resourceful education on balanced portfolios and proper investing strategies to give you the best return possible in bull and bear markets. Read my recent book review here.

We cannot prevent bearish markets, we do have the power to manage our emotions. Considering setting a stop-loss, change your investing strategy or properly educate yourself before investing in the stock market. Plan, prepare and protect your portfolio.

Please see a professional concerning your investment portfolio. See About Me & Disclaimer for additional information about Black Tea.

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Is CVS lagging behind?

Yesterday (Tuesday), CVS (CVS Health Corp., $71.90) announced their new “next-day” home prescription delivery service for their exclusive customers. As well as delivering prescribed medication, they will also deliver:

  • Cold and flu remedies
  • Digestive health
  • First aid
  • Allergy medications
  • Pain relief
  • Baby care products
  • Personal and feminine care
  • Vitamins

Smart move CVS, but aren’t you a little late on this?

From AMZN (Amazon, $1,728.82) to WMT (Wal-Mart, $84.55), large corporations are staying ahead and adding a two-day shipping feature to their shipping system. CVS is ranked as one of the largest retail pharmacy chains in America. With a fair net profit margin of 3.59% (compared to the overall HC industry of 4.92%), CVS manages over 1 billion prescriptions a year and their new “next-day” feature will be an excellent add-on for their customers.

Speaking from personal experience (working in the healthcare field), picking up prescriptions is a constant burden for families everywhere. Specifically for elders, there is a constant request for mail delivery options for medications. There are many elders who cannot drive well due to their poor medical or cognitive conditions, they are constantly depending on busy caregivers or family friends to retrieve their medications.

As an investment, many investors see CVS riding a bullish trend for quite some time since it’s price drop from 2015 at $113.65. However, it is claimed by analysts ait’s still a valuable longterm hold, their 1-year target price is $88.25.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Obtained: WSJ.com, LinkedIn Business Daily, Cnbc.com

Why Do Companies Make Acquisitions?

Acquisitions and mergers are very important to big businesses. It helps their competitive advantage by keeping competitions low and company power high. But why are they so important?

Being in control of more assets give you power, it’s simply how the rich get richer.

Yesterday, AT&T won big with the approved merge with Time Warner for a bid of $85 billion dollars. This partnership means they gained more ownership, popularity, and more money. Being in control of more assets give you power, it’s simply how the rich get richer. These large corporations are looking to “join forces” as a united team, but who are they targeting?

Acquisitions don’t always work in a companies favor, yet it can be a good sign of positive cashflow.

Who’s Their Target?

Small businesses in the “growing phase” are a target for large corporations. With flourishing popularity, these small businesses get acquired for their innovative products or services that will help the large corporations grow beyond its capacity. Acquisitions and mergers don’t always work in a companies favor, yet it can be a good sign of positive cash flow (if the large corporation is lucrative). On the other hand, it is not uncommon for large corporations to merge together. For example, there is a lot of talk about CMCSA (Comcast, $32.06) and DIS (Disney, $106.95) placing a bidding war for FOX (21st Century Fox, $43.36). Also, MSFT (Microsoft, $101.94) recently acquired a large technology company, GitHub for over $7 billion dollars.

There are many factors that may fall into place before a large corporation buys another business, but these deals are happening constantly and won’t always appear on the news. To find a companies acquisitions, you can go to their Quarterly/Annual reports or visit the company’s website. Acquisitions bring a whole new meaning to the popular phrase, “If you can’t beat them, join them”.

Stock Investing 101: How Much Money Should I Invest?

If you’re new to investing in the stock market, it’s best to have a plan of what you want to invest in, how much money you want to invest and how long you want to keep that investment. It’s certainly okay to stash money away for retirement, but it may not be wise to place all of your money away into the stock market.

You don’t want to end up penniless.

It’s best to see a professional accountant first. They will help you sort out how much money to put away towards new investments. However, if you are ready to get started now, place as much as you like in the market as long as you have your personal finances organized and a separate savings account for emergencies. You don’t want to end up penniless but placing all of your eggs in one basket.

Educate yourself before you begin.

Many investors receive the best advice from reading self-help finance books and associating with experienced investors. Educate yourself before you begin- you want to invest to make money, not lose it. There is no set amount to put away into the stock market. The question is to know why you chose to invest, and when you invest in a security, take ownership and understand why you chose to do so.

Please see About Me & Disclaimer for additional information about Black Tea.

Closing Disclaimer:

I am not a certified professional, nor responsible for any of your gains or loses. I’m simply a passionate stock investor who loves to share my experience with other women/men who want to learn general information about the market. May I encourage you to study and evaluate before you make any purchase or sale in the stock market.

Stock Investing 101: Bought My First Security, Now what?

So you just started investing and you purchased your first security, now what?

Whether you’re using an investing app or you opened a brokerage fund account, congratulations! It takes courage to start investing in the stock market and it may often feel lonely. Here a few things you need to understand now that you are a stock investor.

Knowledge is Power

Intelligent investors always keep up political and business news. This is necessary because the news will help you keep up with company announcements, or when to buy or sell. Now, you don’t have to read the newspaper every morning for breakfast like your grandpa does (though that’s not a bad idea either), but this may be as simple as subscribing to a few business apps such as Bloomberg, WSJ ( Wall Street Journal), or Market Watch. Take a few minutes every morning to read about recent earnings reports or business updates on the companies you’re invested in.

Emotional Rollercoaster

Depending on your investing style, DO NOT let the fluctuating prices changes keep you up at night. Many investors understand to not place all of their life savings into the stocks market. It’s crucial to have a separate emergency savings account and investments to hold long-term. This will give you financial stability in your personal finances because that’s what you want, right?

Always keep in mind that when you invest in the stock market, you need to research and view your investment as if your buying a business. However, if you lose money on a bad investment, step back and recreate a strategy that will work for your investing style.

See “About Me” For Disclosed Information.

Stock Investing 101: Let’s Do This!

Want to invest in the stock market but you dont know how to start? Find out now and take notes.

Now, it’s absolutely impossible for me to give you all the information you would need know about stock investing in one blog post, but if you can learn from my failures, then you can learn a lot. Whether you’re a working single mother, stay at home mom, or simply wanting to get ahead your finances, the stock market is a smart way to go and a little education will get you ahead of the “average investor” or what is also known as a speculator.

Goals

Before you begin any new venture, you need to write down goals for what you want. How much do you want to make? Are you investing short-term or long-term? Are you investing to save up for retirement or investing for a big purchase within a couple years? Find out exactly what you want because that will determine everything.

Financial Education

Did you know that between the average doctor and a cocktail waitress, the waitress has more potential to become the stronger stock investor? Why? It’s because of the time she has to educate her self. If there is anything I could get across to you, it is to read, read, and READ! When I started, it was so confusing and left me frustrated at times, but I now know that everyone has their own style to investing and you cannot invest in a particular set of stocks because someone else has a “successful portfolio”.

Note:

Make the decision for yourself, and keep in mind that your favorite retail store brands may not be the best in the stock world- believe me, they owe ME money now.

Defensive VS. Aggressive

As you begin to educate yourself, you will learn about the styles of investing. The two I will share today really speak for themselves- The Defensive Investor and The Aggressive Investor. The Defensive Investor will take on more precautions, leaning towards managed funds, bonds, and a side of commons stocks. The Aggressive investor may do the same, yet work with more tech stocks, starter companies, and take on short-term investments that may be similar to day trading. As said before, everyone has their own style. Take time and figure out what works best for you

Beware of Mr.Market

Who is Mr. Market? Mr.Market is the news, stock advisors and stock bloggers that have all of the information you “need to know”. Though there are great stock analysts out there, he can be very manipulative and is filled with lots of opinions. He will tell you about what you should be selling, buying, and what your portfolio needs to look like. Mr. Market and I are good friends, but I don’t agree with everything he says or does. However, there a few websites you should check out that are great for novice and experienced investors: Investopedia, MarketWatch, The Motley Fool, and Bloomberg. As said before, everyone has their own style. Take time and figure out what works best for you.

Closing Disclaimer

I am not a certified professional, nor responsible for any of your gains or loses. I’m simply a passionate stock investor who loves to share my experience with other women/men who want to learn general information about the market. May I encourage you to study and evaluate before you make any purchase or sale in the stock market.