Stock prices require ‘watching the basket’

Warned early this morning that the American stock market was due for a big drop, we got out of bed reluctantly. Why even get up, if it’s going to be that bad?

[Hat tip to: http://www.sileo.com/ for the great picture at left.]

Then, we slapped ourselves on our forehead. All the gurus say the time to buy is when the everyone else is afraid to do so. We won’t go that far. But we will point out that since we put it together, our tiny, little, unbalanced Model Portfolio has outperformed the DJIA.

We have only made one change since we started the MPI – selling Exxon (XOM) to buy CocaCola (KO). We suggest you look at a three-month comparison of the two stocks, if the link provided doesn’t work.

So, having all or most of your eggs in one basket is fine, IF YOU WATCH THE BASKET, as our DFIL used to say. He apparently was quoting something he’d heard.

It’s so much fun to write this blog. We find out many interesting things we’d never look for if we didn’t have somebody else to share it with. Thank you, readers.

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About InvestingforOne

I've been investing in various assets by myself using a discount broker for many years. Over that time, I've developed some theories that others might find useful. Plus, there is more to investing than money. Time, talent, work, friends, family all go into developing a good and satisfactory strategy.
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