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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I have a lump sum that I received from the sale of a rental property and I'm looking at deploying the capital in the stock market. My question is around portfolio construction or how to deploy a lump sum of money. Do you build half positions in the companies you like and look at adding to the positions on pullbacks or do you initiate full positions if the valuation is reasonable?

Finally, once the portfolio is largely complete, do you recommend only trimming and adding at month-end or once a month? It seems like this would avoid unnecessary trading fees and limit too much trading activity.

Thanks,
Jason
Read Answer Asked by Jason on August 24, 2016
Q: Monitoring Dividend Stocks: I would appreciate your advice as to how investors can monitor and stay on top of bad news, particularly for smaller, riskier dividend stocks.

Example: I have a small position in GRC/Genville Strategic Royalty Corp. I missed the news of the poor results in May. The stock price dived down, and has stayed down. (As of today, the capital loss 49%.) The dividend was cut 27%. How can one avoid or limit losses in similar situations. Also, do you advocate selling a stock as soon as a dividend cut is announced, or anticipated?
Read Answer Asked by Helen on August 24, 2016
Q: I've read and heard a lot of pundits caution about the stretched valuations of Utilities, Consumer Staples and dividend payers as the market looks for yield. What I'm having a hard time understanding is that if that were true, then I would expect yields on those assets to be pushed down as price increases, but these assets still seem to be yielding higher than historical averages. Am I missing something?
Read Answer Asked by Brian on August 24, 2016