Don’t Try and Time the Stock Market


There is an old saying in the investment business: “You can always tell the market-timers: they’re the ones with the holes in their shoes.” While there may be cycles in the stock market, The Turnaround Letter doesn’t know anyone who can successfully time those cycles, so our stock market advice for turnaround investors is not to attempt market timing.

Consistently profitable market timing requires two different sets of very challenging decisions: when to pull out of the market and when to get back in—and it is nearly impossible to get both decisions right. We know people who are still bragging that they pulled out of stocks just before the big stock market crash in October 1987. Unfortunately, once out of the market, they’ve never been able to pull the trigger to get back in. As a result, they’ve missed the more than fourfold gain in the S&P 500 since the 1987 market high.

We also know investors who worried about being left behind when the stock market was hitting new highs in the summer of 1987, and they bought stocks like crazy. Then, when the market crashed in October, they panicked and sold everything—locking in big losses. Those same people probably repeated this pattern in 2000 and 2008.

Both groups would have been better served resisting their impulses and staying the course with a reasonable long term investing strategy. The Turnaround Letter always recommends that investors put as much money into stocks as will still allow them to sleep at night—then keep that allocation pretty constant in both good times and bad.

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Turnaround Investing Blog

Turnaround Investing Blog

Return of Volatility? No, Return of "Normal"

Sizeable market moves can increase the temptation to sell on downdrafts and buy on upswings; however, we strongly advise against attempting to do that. The chances of getting out at the right time and then back in again before the market rebounds are extremely slim. Read More.

Harnessing Activists to Help Find Turnaround Stocks

Activist investors often produce attractive returns for their clients; and you can still use their influence to help your position as a turnaround investor in two ways: Buy a position in a stock with the expectation that an activist will soon follow or buy after an activist takes a stake.


Value Investing


While one of the many dozens of activist funds might find their way to selecting your particular stock, this approach is likely to be frustrating and unrewarding. A better approach is to buy after the activist makes their move. Once an activist takes a stake in a company, how do you evaluate whether it is worthwhile to follow on? Admittedly, this is a bit of an art... Learn how you can harness the power of activist investors to find market-beating turnaround stocks.

Turnaround Letter Stock Pick Named Top Performer of 2017


stock market advicex


What Last Year's Top Stock Pickers Are Buying in 2018


This Forbes write-up follows up on the recent Top Stock Tips report--naming The Turnaround Letter's Crocs recommendation the top performer of 2017: With 90% gains, CROX beat out 100 other investment ideas included in the report; and the stock continues to have value investing appeal, according to Putnam.


George notes, "We see additional upside for the stock in 2018 as management's efforts continue to bear fruit, though the gains will likely be more muted than we saw in 2017."