With the markets hitting new all-time highs in recent weeks, I want to point something out that is literally true: Not a single investor in today's market practicing legitimate buy and hold in a low-cost index fund has ever lost money. Not one.
If you bought at the top of the dot-com bubble in 2000, you're ahead. If you bought at the top in 2007, you're ahead. If you bought the day before 9/11, or just before we all learned that Wall Street was a lit fuse, you are ahead.
That's an extraordinary statistic, isn't it?
It's even more extraordinary when you realize how few investors it applies to. Analytics firm Dalbar gathered data on how the average stock fund investor performed from 1990 to 2010, and compared it to the market index. The results are unsurprising, but�thoroughly�depressing:
Source: Dalbar.
There are several reasons for this, but the big one is simple. Most investors are not long-term buy-and-holders. They lack the patience and require the thrill of something more. Either they are convinced of their ability to time the market, which usually leads to dismal returns, or they are emotional pendulums, buying at the top and selling out at the bottom of markets, which always leads to dismal returns.
Hot Bank Stocks To Own Right Now: BroadSoft Inc.(BSFT)
BroadSoft, Inc. provides software and services that enable mobile, fixed-line, and cable service providers to deliver unified communications and other voice and multimedia services over Internet protocol (IP) based networks. The company?s communications platform consists of BroadWorks software, which enables its service provider customers to provide enterprises and consumers with a range of cloud-based or hosted IP multimedia communications, such as private branch exchanges, video calling, unified communications, collaboration, and converged mobile and fixed-line services; BroadCloud hosted or cloud service that enables its service provider customers to offer Web collaboration, video conferencing, instant messaging, presence, and short messaging to their end-users; and BroadTouch, a client application that enables carriers to offers unified communications services for smartphones, tablets, desktops, and laptops. It also provides a range of professional support services, i ncluding pre-sales support; installation, network integration, project management, and remote upgrade services, as well as consulting services; product life-cycle services; and training services. The company sells its products to telecommunication service providers directly, as well as indirectly through telecommunications equipment vendors, value-added resellers, and other distributors. It operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. BroadSoft, Inc. was founded in 1998 and is headquartered in Gaithersburg, Maryland.
Advisors' Opinion:- [By Seth Jayson]
BroadSoft (Nasdaq: BSFT ) is expected to report Q1 earnings on May 6. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict BroadSoft's revenues will grow 0.7% and EPS will shrink -62.1%. - [By SA Pro Top Ideas]
Stock Movers and Great Calls
On August 2, Josh Burwick argued that the market was underestimating BroadSoft's (BSFT) 2014 earnings potential, with 50% upside looming for shares. The stock is +10.6% in the three weeks since. Read article » On June 27, Alan Brochstein said Apogee Glass (APOG) offered compelling value as its architectural glass reverted to historic margins. The shares are +20.4% since. Read article »
Alpha-Rich long and short ideas regularly move stocks and identify stocks that are about to move. Some notable recent calls subscribers had early access to:To Come Today
Don't forget to check your SA Pro dashboard during market hours today for the latest Alpha-Rich ideas, including an undervalued asset manager and a short idea in the oil services sector. Have a great weekend.
SA Pro Editors
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The SA Pro team is Eli Hoffmann (Editor in Chief), Rachael Granby (Editorial Product Manager), Daniel Shvartsman, Samir Patel, Michael McDonald, and Jeffrey Fischer (Senior Pro Editors). You can reach us at pro-editors@seekingalpha.com.
Top 5 Sliver Stocks To Watch For 2014: Post Holdings Inc (POST)
Post Holdings, Inc., incorporated on September 22, 2011, is a holding company. The Company is a manufacturer, marketer and distributor of branded ready-to-eat cereals in the United States and Canada. The Company�� portfolio of brands includes Honey Bunches of Oats, Pebbles, Great Grains, Grape-Nuts, Shredded Wheat, Raisin Bran, Golden Crisp, Alpha-Bits and Honeycomb. It markets and sells ready-to-eat cereal products in three different categories: sweetened, balanced and unsweetened. Its sweetened products include Pebbles, Honeycomb, Golden Crisp, Alpha-Bits and Waffle Crisp. Its balanced products include Honey Bunches of Oats, Post Selects, Great Grains and Shreddies. The Company�� unsweetened products include Post Shredded Wheat, Post Raisin Bran and Grape-Nuts. Effective January 1, 2014, the Company announced it has completed the acquisition of private label pasta manufacturer Dakota Growers Pasta Company, Inc. Effective January 2, 2014, Post Holdings Inc acquired Agricore United Holdings Inc from Viterra Inc, a unit of Glencore Xstrata PLC, and the transaction also included Dakota Growers Pasta Company, Inc. Effective January 1, 2014, Post Holdings Inc acquired Dymatize Enterprises LLC, a Farmers Branch-based manufacturer and wholesaler of nutrition supplement. Effective January 1, 2014, it acquired Dymatize Enterprises LLC and Golden Boy Foods Ltd.
Honey Bunches of Oats is in the ready-to-eat cereal market. The Company�� Pebbles brands include Cocoa and Fruity Pebbles. The products are manufactured through a flexible production platform consisting of four owned primary facilities and sold through a variety of channels, such as grocery stores, mass merchandisers, club stores, and drug stores.
Advisors' Opinion:- [By Ben Levisohn]
Post Holdings�(POST) has plunged 11% to $39.69 after the cereal maker missed earnings forecasts and offered a truly horrific EBITDA forecast.
Lululemon Athletica�(LULU) has gained 5.4% to $41.12 after its founder sold half his stake in the athletic-apparel company and said he would not engage in a proxy battle for control.
- [By Suravi Thacker]
Even peers such as Post Holdings (POST) were also facing similar problems of lower cereal sales. Post Holdings too reported its first quarter results recently which failed to meet analysts��expectations. Although its revenue grew 77% to $438 million over last year, the increase was mainly because of a host of acquisitions made by the company. In fact, revenue from Post Foods, which includes cereal business under the name of Post brand, fell 2.4% to $239.5 million.
- [By John Kell and Lauren Pollock var popups = dojo.query(".socialByline .popC"); ]
Post Holdings Inc.(POST) lowered its fiscal-year adjusted profit view, as the company flagged cereal-demand weakness but also said results would include contributions from some recent acquisitions.
Top 5 Sliver Stocks To Watch For 2014: Powershares Dynamic Leisure And Entertainment Portfolio (PEJ)
PowerShares Dynamic Leisure and Entertainment Portfolio (the Fund) seeks investment results that correspond generally to the price and yield of an equity index called the Dynamic Leisure and Entertainment Intellidex Index (the Leisure and Entertainment Intellidex). The Leisure and Entertainment Intellidex consists of stocks of 30 United States leisure and entertainment companies. These are companies that are principally engaged in the design, production or distribution of goods or services in the leisure and entertainment industries. These companies may include companies that provide goods or services, including television and radio broadcast or manufacture (including cable television); motion pictures and photography; recordings and musical instruments; publishing, including newspapers and magazines; sporting goods and camping and recreational equipment; toys and games, including video and other electronic games; amusement and theme parks; travel and travel-related services; leisure apparel or footwear, and owners and operators of sports arenas and gaming casinos, hotels and motels. Stocks are selected principally on the basis of their capital appreciation potential as identified by the AMEX (the Intellidex Provider) pursuant to its Intellidex methodology.
The Fund will normally invest at least 80% of its total assets in common stocks of leisure companies and entertainment companies. The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Leisure and Entertainment Intellidex. The Leisure and Entertainment Intellidex is adjusted quarterly, and the Fund, using an indexing investment approach, attempts to replicate the performance of the Leisure and Entertainment Intellidex. The Fund generally will invest in all of the stocks comprising the Leisure and Entertainment Intellidex in proportion to their weightings in the Leisure and Entertainment Intellidex. The Fund�� investment advisor is PowerShares Capital Management LLC.
Advisors' Opinion:- [By Mary Anne & Pamela Aden]
So, for now, the US stock market is the best overall market. So continue holding the stocks you have, which are mostly doing very well. If you want to buy new positions and increase your stock allocation, the following ETFs are among the strongest ETFs, and we recommend them for purchase: SPDR KBW Bank (KBE)
Consumer Discretionary SPDR (XLY)
Merrill Lynch Retail HOLDRS (RTH)
iShares Dow Jones US Financial Service (IYG)
PowerShares Dynamic Leisure & Entertainment (PEJ)
Subscribe to The Aden Forecast here��/P>
- [By John Udovich]
The shares of small cap IMAX Corporation (NYSE: IMAX) have slipped more than 10% this week on growth concerns - meaning it might be a good idea to take a closer look at the stock plus its performance�verses other cinema stocks like Carmike Cinemas, Inc (NASDAQ: CKEC), Cinemark Holdings, Inc (NYSE: CNK) and Regal Entertainment Group (NYSE: RGC) along with the PowerShares Dynamic Leisure & Entertainment ETF�(NYSEARCA: PEJ).
- [By John Udovich]
Labor Day weekend is coming and if you have travel plans, you might be making a stop at a facility owned by small cap TravelCenters of America LLC (NYSE: TA) which is also worth taking a closer look at from an investment standpoint along with the PowerShares Dynamic Leisure and Entertainment ETF (NYSEARCA: PEJ) and iShares Dow Jones Transportation Average ETF (NYSEARCA: IYT).
Top 5 Sliver Stocks To Watch For 2014: Zoetis Inc (ZTS)
Zoetis Inc, incorporated on July 25, 2012, is engaged in the discovery, development, manufacture and commercialization of animal health medicines and vaccines, with a focus on both livestock and companion animals. The primary livestock species are cattle (both beef and dairy), swine, poultry, sheep and fish, and the primary companion animal species are dogs, cats and horses. In February 2014, Benchmark Holdings PLC purchased aquaculture vaccine and development assets from animal health company Zoetis Inc.
The Company�� more than 300 product lines include vaccines, parasiticides, anti-infectives, medicated feed additives and other pharmaceutical products. The Company�� product portfolio also includes businesses, such as diagnostics, genetics, devices and services, such as dairy data management, e-learning and professional consulting. The Company operates in North America, Europe, Africa, Asia, Australia and Latin America.
Advisors' Opinion:- [By Benjamin Shepherd]
��an�� best friend��could turn out to be one of your best investments, too. The numbers tell the story: Pet care is a high-growth industry.
More than 60 percent of US households report an animal in residence. About 46 million US families own at least one dog, with 40 million reporting that they own cats. Not only are dogs and cats good company, but years of research show that pets convey health benefits, with owners reporting lower blood pressure, less anxiety and higher immunity to illness.
But pets aren�� cheap. Aside from the obvious cost of purchasing the animals they also need to eat, play and have their own health issues addressed, costing Americans an estimated $55.53 billion last year. That price tag has been steadily rising for more than a decade, as an ever-growing number of households call at least one animal ��amily.��/p> - [By Ant贸nio Costa] Zoetis Inc (NYSE: ZTS) Near-term outlook appears positive. A move above the key resistance level of $32.9 would help the stock touch the immediate PT of $33.98-34.21. Only a drop below $31.02 would negate the positive outlook for ZTS. ( click to enlarge )
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