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  • Association for Investor Awareness - Week of 04/29/2010

    Special Report
    Protect Your Stocks
    From A Correction

    In This Issue:

    A Stock Market Downturn Is Overdue
    Stop-Loss Orders Can Save A Portfolio
    Safeguard Your Blue Chips With LEAPS
    Some Funds Go Up During Downturns
    We Don't Recommend Short Sales
    An All-Weather Fund For Cautious Investors
    The Bottom Line This Week

    Since the bull market started last March 9, the stock market has been on a tear. For the 13 month period, the Dow rose 68.7% and the Nasdaq shot ahead 94.8%. After the unpleasant losses investors endured from late 2007 to early 2009, the rebound was especially sweet.

    Although we think the bull market has further to go, we also think the near-term downside risks are becoming significant. Consequently, we are devoting this issue of the AIA Advocate to strategies that you can use to protect your portfolio while remaining invested for whatever additional profits are on the way.

  • Association for Investor Awareness - Week of 04/30/2009

    In This Issue:

    Signs Of A Better Economy? (Or At Least Not As Bad?)
    Stocks For A Weak Recovery
    The Bottom Line This Week

    Last month investors received another booster shot from Wall Street as the Dow and the Nasdaq rose an additional 1.2% and 5.5% respectively. The gains left stocks up 26% from the rally's jumping off point. With any luck, and a few encouraging numbers from the economy, the rally could continue for another few weeks.

    Lest anyone think the bear is finished, however, we must remind you that the market never moves in a straight line very long. Even if this is the start of a new bull market, we must expect to get some nasty shocks along the way. After such a strong rally, the first correction may be close at hand.

  • Association for Investor Awareness - Week of 03/26/2009

    In This Issue:

    Banks And Auto Stocks Led The Way Down, And Now Up
    Yes, The Rebound Could Be Another Bear Trap
    If There Ever Was A Time To Use Stops, It’s Now!
    In Many Cities, Real Estate May Be Set To Rise
    The Bottom Line

    Over the past month, the stock market staged a strong reversal as the Dow and the Nasdaq rose 6.9% and 9.1% respectively. As often happens when investment optimism begins to replace a long period of pessimism, small stocks did better than their larger cousins.

    However, many blue chips also performed very well. For example, our first three picks from last month, JP Morgan Chase (JPM), Archer Daniels Midland (ADM), and Ford (F) jumped 21.5%, 5.3%, and 42.3% respectively. Our fourth pick, SPDR Gold Trust (GLD), dropped 2.4%.

  • Association for Investor Awareness - Week of 01/22/2009

    In This Issue:

    Credit Rebound Coming From Unexpected Sources
    Signs Of Life Are Returning To Some Real Estate Markets
    A Home Town Advantage With Stocks
    Forget The Bottom, Focus On Value
    Two Leading Stocks Look Especially Good Right Now
    The Bottom Line This Week

    As the inauguration of the new American president approached, many analysts expected the market would have an "Obama bounce." Alas, that happy event did not occur. On the contrary, as further economic and banking industry worries continued to mount last week, the Dow and the Nasdaq dropped another 3.7% and 2.7% respectively.

    The market fell another 332 points on Tuesday, when our new president took office. (Nothing personal, Mr. Obama. As the Godfather used to say, "it's just business.")

    On Wednesday, however, the mood brightened and the market rebounded 279 points.

  • Association for Investor Awareness - Week of 01/08/2009

    In This Issue:

    It's Time To Start Looking Beyond Current Woes
    A Big Cash Horde Is Always Bullish
    When It Comes To Rebounds, Too Early Beats Too Late
    Eight Blue Chips Many Pros Are Buying
    The Bottom Line This Week

    There's nothing like the start of a new year to shake investors out of a funk. It happened again a few days ago when the market rallied as the first of January approached. The week the calendar turned over, the Dow and the Nasdaq went up an impressive 6.1% and 6.7% respectively. It was an encouraging end to a dismal year that saw the two indices plunge 33.8% and 40.5% - the third worst performance in recent memory.

    Alas, it is far too early to declare an end to the bear market. With manufacturing and home sales dropping to very low levels, it is clear that the economy is still sinking. But as we will discuss later, that doesn't mean that a recovery is off the table for late 2009.

  • Association of Investor Awareness - Week of 10/30/2008

    In This Issue:

    A Big Rebound May Be Close
    Like Kids In A Candy Store
    Super Stocking Stuffers
    These Trends Are Your Friends
    The Bottom Line This Week

    Another bear trap snapped shut last week when the 4.8% stock market gain from October 6 - 10 turned into a 5.4% loss for the Dow and an ugly 9.3% plunge for the Nasdaq.

    As has been the usual pattern during this stock market plunge, the drop was larger than the previous bounce. One of our group compared the market to a slot machine that gives just enough money back to make people want to keep playing.

    We saw another inducement to play on Tuesday of this week when the market surged nearly 890 points when it became known that the Fed would lower interest rates again. When the official announcement came on Wednesday, stocks eased back 74 points. It was a textbook example of the old Wall Street rule to "buy on the rumor, sell on the news."