Investment Philosophy

For those of you new to investing or trading for your own account, you have probably found out by now there are numerous investing philosophies that you could follow.

The three primary ones are value, fundamental and growth. There are hundreds or even thousands of variations of these three philosophies. These are called strategies.

I use all three of the philosophies to form a strategy that works very well for me.

On 12/18/2015 I posted a Christmas Rally on the blog so the newer members would be aware of the rally and what I think is the reason behind it. The market (DOW) rallied 625 points before selling off the last two days. The two day selloff was the retail traders trying to lock in profits or tax loss selling.

On January 4, 2016, the first day of trading in the New Year, the DOW sold off 468 points before recovering to 17148 and closing down ONLY 276 points. If you might have been in doubt about the premise that the Christmas Rally is primarily because the professional traders are very scarce through the holidays, today should have put that doubt to rest for all time.

To top that off I was holding seven stocks into the New Year and five of those were higher on the day. This occurs because those stocks were bought at deep value with strong fundamentals behind them. The folks who are in these stocks at this level don’t want to let those shares go, they know they’re in at the right price.

I hope you all had a Merry Christmas

and a Happy New Year

Dave C.

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