3 Ways To Protect Your Portfolio

Protect your portfolio

Past performance is not indicative of future results, but I want to give you three ideas of what you can do to hedge against volatility.

Leaping Into Splits

stock splits

A stock split occurs when companies agree to increase the number of outstanding shares. For example, if a stock is selling at $500/share and it agrees to do a 2:1 split, that means the new stock price will drop in half to $250, but I will get 2x the shares I had before. The value of my shares stays the same. One share at $500 is the same as two shares at $250/share.

Parabolic Moves

parabolic move

Any time a stock moves too far in one direction too quickly, aka a parabolic move, I look to see if it will revert to its mean – its average.

Staycation or Vacation?

Companies that focus more on clothing and beauty products. What do the numbers say about spending in those industries? Today’s trade ideas are in the specialty retail industry.

Bear Rally – Time to Buy?

bear market rally

After the longest weekly losing streak since 2001, the bears went into hiding last week as the market had a parabolic move upward. Investors had the chance to digest the news that overall demand remains strong despite the increased cost of goods.

Insider Buying

stocks

The summer season unofficially begins with the extended weekend. Markets are closed on Monday in observance of Memorial Day. We typically see reduced trading volumes before a holiday, and we could see the markets float higher on lighter volume today. Adjust your positions as needed.