Whither this Election Year Market?
Excerpted from the May 2012 Issue
May 24, 2012
As political posturing and rhetoric continues to escalate, most of us are wondering about the election’s potential impact on our investments.
Historically, the stock market generally does well in a presidential election year. The S&P has risen in 12 of the 15 presidential election years since 1952. However, the trend has been less clear in recent election years, with stocks showing significant losses in 2000 and 2008. While election year results have generally been good, the best returns have typically come in the year before the election year—on average more than double the annual return rates seen in each of the other three years.
Much has also been made of how each candidate—and his respective party’s philosophies—will impact Wall Street. History shows us that the market has tended to respond more favorably to a Republican victory in past elections. In short, although there is some logic to the presidential cycle, you shouldn’t be trying to time the stock market—in an election year or any other time. Read more historic election year statistics.
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Turnaround Investing Blog
It can be tempting to look at a depressed stock and think, “it used to trade at 40 and now it’s at 8 – therefore it must be a bargain.” Unfortunately, the fact that a stock once traded at a higher price does not guarantee that it will ever get back there. One big reason that a stock trades so much lower than before: its earnings potential or assets have deteriorated. Without some fundamental improvement, the share price will continue to lag, or worse.
Market-Beating Profit: The 200+ Club
Turnaround stocks present a unique opportunity for savvy investors to buy in at bargain prices. Take a look at this list of just a few of our purchase recommendations that have realized a return rate of 200% or better:
* Bristow remains an our active purchase recommendation, currently as a "Hold," and 1,928% stock profit is as of 8/11/16.
Retail Turnaround Trio
MoneyShow.com interviewed George to learn more about his favorite value stock picks for today's market. In "Retail Turnaround Trio," Steve Halpern highlights three of The Turnaround Letter's recently-profiled retailers: JWN, TIF and SPLS.
Putnam notes, "Well the retailing sector is undergoing very fundamental change as people move away from the bricks and mortar mall doors to buying more and more online but that's not going to wipe out all of the old-fashioned retailers. Starting the middle of 2015, investors just moved away from retailers en masse and a number of them are trading at about half the level they were a year ago. We thought some of the higher quality names that definitely will be survivors looked interesting."
Learn more about these three retail stocks poised for a turnaround.
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