InvestEd 2014: What Attendees Say
April Webinar: Determining a Company's Financial Health
Utilize Relative Strength to Manage Portfolios: A Buy High, Sell Low Strategy Part 2
Your Facebook Search History
Irvine, CA June 6-8, 2014
If you haven't attended an InvestEd conference, feedback from conference attendees will encourage you to attend this year. Attendees of last year's conference provide compelling reasons why you should attend:
"InvestEd felt less like a conference and more like a club. In a club, senior members welcome the new, bringing them into the group and ensuring their success. Everyone in a club knows that they are at different points in their own paths towards their own goals, but they share a common interest and passion for the topic. I felt that at InvestEd: the people were warm, welcoming, and genuinely wanted to pass on their wisdom to others."
"The newbie track that I attended started with the absolute essentials and moved further at a comfortable pace into more complex concepts. Handouts and additional materials were provided to allow participants to make the best use of their time in the sessions. The presence of a Newbie track itself speaks to the culture of InvestEd: one where everyone realizes that we all start off as novices, and accept responsibility for mentoring those new members. Despite my considerable investment ignorance, I didn't feel intimidated or dismissed. If you are new to investing or a seasoned veteran, InvestEd has a spot for you."
"I found the bonus classes on Friday to be interesting and useful. They formed a good start to the otherwise frenetic pace of the following two days. I spent most of my time in classes presented by Mary Ann Davis, Saul Seinberg and Don Cassidy. Though I’m still not sure I can employ options to enhance my returns sufficiently for the time I would spend at it, the information provided by Ms. Davis was more than enough to adequately answer that question. Saul’s presentations are always interesting. I particularly enjoyed his dissertation on selling. But probably the material presented by the Heretical, Out-of-the-Box, Don Cassidy piqued my interest the most. He posed some very thought provoking questions and information that definitely stimulated my thought a good deal. His macro approach to investing considerations and market conditions are unusual and especially timely. Great stuff and I hope he returns with more."
"Kudos again to the entire lnvestEd team. I think what you do is incredible and this year seemed particularly special to me. I thought there was such a good variety of classes and teachers. Keep'em coming!"
Review the conference curriculum and register today. Our guest room rate is $99 plus tax. Come early or stay late and take a mini-vacation in southern California. Local attractions are featured on the Tourism page.
InvestEd Inc. Free Webinar
Determining a Company's Financial Health
Sunday, April 27, 2014
8:00 PM-9:00 PM ET / 5:00 PM-6:00 PM PT
Instructor: John Diercks
Investors will be introduced to the financial statements of a company. These statements show the financial condition of a company and whether the company is making money. The webinar will give meaning to the numbers and how these numbers relate to each other. We also will examine the income statement and balance sheet in detail through the introduction of key financial ratios to evaluate the liquidity, capital structure, profitability, and growth of a company. Finally, we will learn how the statements of cash flow bridge these reports. This webinar is for novice investors as well as more savvy investors.
Register now to attend the InvestEd Inc. free online investor education webinar. Space is limited.
John is an InvestEd instructor who teaches financial classes at local, regional, and national events. Currently, he is a director of the Central Pennsylvania Chapter of BetterInvesting and the treasurer of two investment clubs, including the Centre Region Model Investment Club. Prior to retirement, with advanced degrees in meteorology, John spent 26 years in the Air Force and 16 years as an instructor of meteorology at The Pennsylvania State University.
Utilize Relative Strength to Manage Portfolios: A Buy High, Sell Low Strategy Part 2
One of the most useful technical tools to use in trending markets is relative strength, as noted in Part 1 of this article. You can leverage the time you spend doing relative strength analysis to your advantage by carefully choosing indexes with different attributes and then measuring them with the relative strength tool. The secret is to exploit achievements of broad-based indexes to discover which companies currently are outperforming the index you selected and then include those types of companies in your portfolio.
Market Capitalization: Small vs. Large
Here's one example. Suppose you want to know if current market and economic conditions favor small-cap or large-cap companies. You can do a relative performance comparison between the S&P 600 Small Cap Index ($SML) and the S&P 500 Large Cap Index ($SPX) to determine this.
Check out StockCharts' display of a full-sized image of the Price Performance Relationship Between $SML and $SPX chart to the left. The rising trend support line in the relative performance or price relationship chart indicates strong outperformance for small cap stocks when compared to large cap stocks over the three year time period covered by the chart.
International vs. Domestic
To evaluate the relative strength relationship between international equities and domestic equities, make a relative strength comparison between the MSCI World, Ex-US, Index ($MSWORLD) and the S&P 500 Large Cap Index ($SPX).
Check out StockCharts' display of a full-sized image of the chart to the right. The falling trend resistance line in the relative performance or price relationship chart indicates weak underperformance for international stocks when compared to US large cap stocks over the three year time period covered by the chart.
Developed International Markets vs. Emerging International Markets
International markets can be explored further by analyzing the relative strength relationship between developed and emerging markets. To make this comparison you can evaluate price performance between the MSCI EAFA Index ($IEE) and the MSCI Emerging Markets Free Index ($MSEMF).
Check out StockCharts' display of a full-sized image of the chart to the left. The rising trend support line in the relative performance or price relationship chart indicates increasingly strong outperformance for developed markets international stocks when compared to emerging markets international stocks for the three year time period covered by the chart.
Growth vs. Value
Are investors favoring growth or value? A relative strength chart that compares the Russell 2000 Growth Index ($RUO) with the Russell 2000 Value Index ($RUJ) will give you the answer. Let's look at that arm wrestling contest.
Check out StockCharts' display of a full-sized image of the chart to the right. The shaded green area shows a lengthy period where growth and value stocks had a somewhat choppy, but rather equal, price performance relationship. In other words, neither growth nor value was significantly outperforming the other. Then, beginning in the summer of 2013, a breakthrough occurred when price performance of growth stocks began to clearly outperform the price performance of value stocks.
Based on the relative strength analysis above, three broad categories show outperformance: small cap, domestic, and growth. High relative strength for each of these categories indicates we should buy securities from within these broad groups. Buy (or hold) when relative strength is high.
Three broad categories show underperformance: large cap, international, and value. Low relative strength for each of these categories indicates we should sell securities from within these broad groups. Sell when relative strength is low.
In next month's newsletter, part 3 of this article continues the relative strength topic with a discussion about individual stocks versus a benchmark.
Sharon developed InvestEd's online webinar education program. She contributes to two stock study groups within her community and has invested in the stock market for more than 30 years. She holds a BS in Computer Science/Accounting from the University of Central Oklahoma and an MBA from Oklahoma City University. Professionally, Sharon is a retired software developer who designed and developed domestic and European point of sale software solutions for a large car rental company. Her hobbies include drawing and painting, along with enjoying nature, hiking, reading, and gardening. She loves to travel and is interested in learning how history and geography shape people, cultures, and the world.
Your Facebook Search History
Self-proclaimed "digital goddess" Kim Komando helps us know how to delete our search history on Facebook. Yes, Facebook keeps track of our searches, just as Google does. As Komando points out, the entire business model of Facebook is built on collecting our personal information and using it to make money. But maybe we don't want Facebook (or the world) to know about every search we make.
Removing our search history is easy. Simply log into your Facebook account and click on
your Timeline, also shown as Edit Profile. Check out the Activity Log, which shows your actions during your years of being a Facebook user.
You will notice a column along the left side of your page with options of Photos, Likes, and Comments. Below that you will see "MORE." After clicking on the MORE link, you will see a long list of items, including one titled Search. When clicking on that Search link, you will see all of the searches you have made, organized by date.
When I do this, I find I am the only one who can see my searches, as noted by the lock, but I still may not want those searches to show up on Facebook. Near the top of the page on the right, I see an option to clear all searches, and I see an option (the crossed-circle icon) to the right of my searches that will let me delete individual searches, should I want to keep some of my searches and return to them later.
The downside to clearing all of our search history is that Facebook will not be able to display some profiles the same as it did before. This happens because it uses our past searches to bring up relevant results when we do a search. Is this a problem to you? Probably not, but that's for you to decide.
Even if you clear your search history, you will want to check searches every once in a while, since all new searches conducted after clearing your past searches will appear in your search history.
Sandy is an InvestEd Inc. director and serves as secretary. She is lead editor and prepares the general program brochure for the InvestEd conference. Sandy, an O'Hara Award recipient, is a former charter member and president of a local investment club. She helps form investment clubs, presents introductory investing programs, and teaches stock study classes at local and regional events. Sandy is professor emeritus, Georgia Southern University.
Questions? Contact InvestEd
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