The stock market seems determined to create some inventory for us. Now down a little more than 9% from the highs, it may be setting up for at least its annual 10%-15% decline. It also appears to have the firepower for a bigger down move of 20% or more, which comes long every few years. Between the messes in Europe, weaker earnings outlook in the U.S. and momentum stock collapses we have seen the fuel for the fire would seem to be there. It doesn't help that the Facebook (FB) IPO that was supposed to bring back retail investors has instead caused them to lose that last scrap of faith in the stock market. It is time to start paying some serious attention to gathering a list of inventory we are interested in adding to the long-term portfolio.
Since my very first day as a stockbroker, I have used Standard and Poor's (S&P) proprietary STARS (STock Appreciation Ranking System) method. To give you some idea of how long the system has been part of my research routine, the first time I used the service, Michael Milken was still revered and feared on Wall Street and the Berlin Wall was still in place....354 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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