Black Friday Sale

The last couple of months have been pretty rough on investors. S&P 500 and DOW are both down around 10%. Tech stocks have been hit particularly hard, with the NASDAQ down nearly 15%.

With that pain, though, comes opportunity! Today is Black Friday, when shoppers go looking for the best deals. Now is the time to revisit those stocks that you thought were overpriced earlier in the year. Some great companies are on sale right now!

Performance Update for first half of 2018

Here at StockBlower, we love to toot our own horn.  So how are our top 5 favorite stocks doing this year (through July 6th)?

1. WWE: up 144%
2. AAPL: up 9%
3. F: down 13%
4. SHOP: up 49%
5. AMZN: up 44%

Average of our Top 5 Stocks: up 47%
By comparison the S&P 500 (IVV) is only up 2.35%
Not bad.

All Eyes on China

With tariffs kicking in and the possibility of a full blown trade war looming, Chinese stocks have been pulling back from their recent highs. As things escalate, we expect some further drops. Keep an eye on China for buying opportunities. Wait for signs that the trade war is ending, like dropping of tariffs or new trade agreements. Be patient - this can take some time to develop.

You may wish to focus on more stable companies such as commerce giants Alibaba Group (NYSE:BABA) and JD.com, Inc. (NASDAQ:JD), or search provider Baidu, Inc. (NASDAQ:BIDU). For those who an appetite for more risk, there have been a series of Chinese IPOs recently. One to look at is the video streaming service iQIYI, Inc. (NASDAQ:IQ).

Rough Seas Ahead?

2018 has been off to a bumpy start. Stocks surged higher in January at a frantic pace, but came crashing down at the beginning of February. The major indices are still below their January highs. This may scare off some investors, but we embrace the volatility here at stockBLOWER. Down days give us a chance to pick up great stocks at a discount.

It would be wise to make a list of stocks that you are interested in, along with prices that you would be comfortable buying at. This could include things already in your portfolio. Keep it up to date, as companies change over time. Revisit the list when the market dips. Be ready to jump in when the price is right.

Performance Update of our Top 5 Favorite Stocks: Vol. II

How are our Top Favorite 5 Stocks doing?  Below is the current performance since our last update (performance from 11/15/2017 to 1/20/2018)

1. WWE: up 23.59%
2. AAPL: up 4.3%
3. F: down 0.33%
4. SHOP: up 11.16%
5. AMZN: up 13.83%

Average of our Top 5 Stocks: up 10.51%
By comparison the S&P 500 (IVV) is only up 8.51%

We also want to give a special shout-out to Oprah and WTW, up 43.08% over the same time period.

New Year, New Gains!

Happy New Year fellow Stockblowers! Here are a few tips to start off 2018 right:

• Now is a good time to think about contributing to your IRA. Most people can contribute $5,500 for the 2018 tax year. By contributing now, the money can grow all year!


• For all the procrastinators, you can still make an IRA contribution for the 2017 tax year. The deadline is 4/17/18.


• If you held off on selling stocks during your portfolio review last year for tax reasons, revisit those stocks and see if now is a more appropriate time to sell.


• Tax season is just around the corner, so get ready for it by talking to your financial advisor. Don't just look back at last year, plan for 2018.

Portfolio Review

With 2017 winding down, now is a great time to review your portfolio. Look at each of your holdings individually and ask yourself:

·        What reason(s) did I have for making this investment?

·        Are they still valid today?

·        Have there been any significant changes (good or bad) since my last review?

·        If I didn’t already own it, would I still want to invest in it today?

If you find yourself with some negative responses, you should consider trimming the offending positions from your portfolio. They may have been good investments at the time, but there may be better choices now.

Before selling, look at any penalties for doing so. Fees and taxes are worth considering. For example some mutual funds charge if the fund is not held long enough. It may be worth waiting that out. If you’ve made any gains in a taxable account, consider the tax implications. It may be worth waiting until January if you don’t want it to affect your 2017 taxes. Losses can be timed as well.

Once the portfolio has been narrowed down, it should be rebalanced as well. Make a list of all your holdings, and decide what percentage of your total portfolio you would like them to be. Compare that to actual percentages. Consider fixing any large discrepancies. 

Now your portfolio is ready for 2018!