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Adjust Your Portfolio Using the Club’s System, Not Political Projections
From Baltimore – I recently found myself in the hot seat.
It was during a rare international Zoom call with the co-founders of The Oxford Club and other top executives in our industry. They were keen to hear exactly how the Club is helping you and other Members navigate today’s tricky markets ahead of what promises to be a stressful election.
They especially wanted to know what we’re doing to help Members with not only different risk tolerances and time horizons, but also different reasons to be anxious about this election.
Well, as you might expect, within our large, global membership base (of more than 150,000!), we have Members who range from short-term-oriented, thrill-seeking speculators to longer-term conservative investors. Many of us, myself included, can be both.
And politically speaking, we have conservatives, liberals and independents among our ranks. But our Oxford Wealth Pyramid is silent on politics. So how do we address our collective anxiety about this coming election?
You can find the Club’s response to these challenges by tuning in to today’s Market Wake-Up Call. Chief Investment Strategist Alexander Green speaks with host and Associate Franchise Publisher Rachel Gearhart about why you must stay the course this year with your portfolio disciplines, regardless of who wins the election. “Focus on commerce, not politics,” Alex advises. Because in the long run, share prices always follow earnings.
Think Small
And while the Club follows earnings growth with its conservative and disciplined approach to longer-term investing, we are also big fans of ratcheting up short-term profits using smart speculation strategies. And today, Alex also talks about one of his favorite strategies using microcap stocks.
Why microcaps?
Because we can’t expect blue chips like Apple (Nasdaq: AAPL), IBM (NYSE: IBM), Walmart (NYSE: WMT) and Boeing (NYSE: BA) to double their sales or earnings anytime soon. They’re just too big to do so in that time horizon.
Small companies have a far better chance of doubling or tripling sales within a year or two. And just a minor uptick in sales for a microcap can create a huge upsurge in its share price.
Alex describes why using a “rifle approach” to select the best companies – and applying his strict eight-pronged criteria – is the way to win this year.
Just take a look at this chart of the S&P 500 versus the so-called FAANG tech stocks. This year, market advances have come primarily from a very narrow group of stocks, while the rest of the market has lagged.
And small cap stocks, including microcaps… have lagged the broader market even more.
That all may be changing right now. The recent drop in the market was also led by the FAANG stocks, which may indicate a rotation – finally! – away from large growth stocks and into small caps, including microcaps.
Alex has developed eight criteria for picking the best microcap stocks for smart speculation. These fast-growing, well-managed companies have the potential to gain tenfold in the coming months. Subscribers to Alex’s Oxford Microcap Trader service have already seen this happen with plays he’s recommended on Eastman Kodak (NYSE: KODK), up 209% in 13 days, and Owens & Minor (NYSE: OMI), up 476% in four months.
While those examples were partial gains using options where Alex took money off the table early, these are real gains on great companies – and demonstrate the power of this unique approach. Alex’s win rate on his stock trades in this service is 48%, and on his option plays it is 48.4%.
Unlike in our investment portfolios in the monthly newsletters, for these trading services we know we can have more losses than wins… It’s not an average annual gain we’re looking for. It’s the real opportunity to have an outsized gain quickly, against relatively small losses.
Alex and the Club show you how to minimize your losses using limit buying, exit stops and position sizing disciplines. These strategies allow you to cut your losers free while riding your winners to new highs.
We always recommend you start investing by taking a conservative approach to building long-term wealth using our asset allocation model. For more than 22 years, this model has helped subscribers get started in investing. Our Pillars of Wealth system can help you build foundational wealth that is proven to survive even during volatile times of crisis and chaos. Our editors’ monthly newsletters include several portfolios designed to give you the best equity opportunities for your stock allocation in this model.
When it comes to trading for shorter-term profits, we have several premium research services, including Oxford Microcap Trader, that apply smart trading strategies. Our goal is to provide you with the tools and know-how you’ll need to help guarantee you never have an unacceptable loss – while also giving you regular, weekly opportunities for home-run profits.
As I told our co-founders on the Zoom call, I continue to be very proud of how our editors, like Alex, use the Club’s investment system and various portfolios to accommodate investors and speculators alike. And how the many testimonials I read monthly from our Members highlight how our editors and strategies have helped our Members achieve a wealthier life.
For more on Alex’s Microcap Trader service, click here.
Enjoy your Sunday,
Julia