Why Disciplined Trading Improves Performance
Often we’re asked about performance. People say: ‘How can I guarantee the best results from my trading?’
Often we’re asked about performance. People say: ‘How can I guarantee the best results from my trading?’
Collars are used by investors to protect long stock positions. Some investors prefer the collar position over a protective put in an attempt to reduce the overall cost of that protection. This is because collars incorporate the sale of a covered call in conjunction with the purchase of a protective put.
For many U.S. companies, the newest area of opportunity is China. As the People’s Republic develops its economy, doors that have been closed to American businesses are opening, and U.S. firms are walking through in increasing numbers.
When 2008 began, our expectation was that the recession would be relatively modest. A year later, we’re looking at the likelihood of the most severe recession in the post-World War II era. One of the main factors that transformed a potentially modest economic decline into an extremely sharp slowdown was the across-the-board pullback in credit, as demonstrated in the accompanying exhibit. It illustrates the net percentage of banks tightening loan standards across different types of credit. We expect the credit crunch to continue in 2009.
Today’s investing environment is marked by severe financial crisis, economic uncertainty, and heightened market volatility. Deterioration in the credit markets over the past year has impacted the way Wall Street and Main Street do business. The rising tide of above-average global growth that had previously lifted all equity investments has receded, and individuals, institutions, and financial intermediaries may use the current market turmoil as an opportunity to reassess their investments. Their confidence shaken by complex and difficult-to-explain investments, today’s investors have a desire to go back-to-basics and embrace equity strategies that are high-quality, straightforward, and easily understood. Furthermore, investors are searching for a forward-looking investment approach that not only benefits from change, but counts on and anticipates it. Fundamental equity investing is just such an approach.