Frequently Asked Questions
HOW TO USE THE WALL STREET MONEY LETTERS:
When we first started our flagship The Wall Street Money Letter in 1980, the WSMLwas a much simpler monthly report. Back then, it consisted of a brief essay on the investment markets and a model stock portfolio. We still have essays but now in addition to our original model portfolio, we have added technical market forecasts, trading model portfolios, small cap model portfolio and specific sector portfolios under different letter banners. In addition, we have also added a Buy Sell and Hold advisory which allows subscribers to develop their individualized portfolio of interest requesting our proprietary cycle analysis and status recommendations.
MARKET ANALYSIS & FORECAST:
Each market analysis and forecast update is based on our current cycle analysis using proprietary short term and intermediate term cycles. These cycle forecasts offer a short and longer term overview of key support and resistance levels in the markets which help to guide our short and longer term investment decision making process.
CYCLE VALUED GROWTH PORTFOLIO:
This portfolio is selected based on our cyclic buy signals for fundamentally analyzed security issues. This newsletter tracks many household named valued investments for the best timing in adding positions to portfolios. Subscribers should realize that you could have great companies that at times, could be bad stocks. Subscribers may follow our cyclic buy and sell suggestions or incorporate a discipline using our trailing price floor investment disciplines.
In the current market climate, we are using a risk tolerance trailing price floor level of 7 %. This discipline requires that we sell any position that drops 7 % from the higher of either the purchase price or the highest priced tracked on a closing basis. The position may be bought back - hopefully at a lower price - so long as its cycles remain positive on an intermediate basis. Investments which move up in value will be held until such time as the upward movement ends and the 7 % trailing price floor is triggered. For subscribers who elect to ignore these short term "Risk Management" sell signals, we provide you with our original research anticipated trading signals which may contain shorter term directional movement in price. Positions reaching our upside trading channel forecasts may also be sold as price targets have been successfully achieved.
DIVIDEND CAPTURE PORTFOLIO:
Dividend Capture is the strategy of buying a stock just before the stock is traded without the dividend, holding it just long enough for the stock to move back to your original purchase price in order to collect the dividend without cost, then selling the stock thereby capturing the dividend.
Dividend Capture Strategy
Our Dividend Capture Strategy may suggest a dividend "Money Machine" for all investors. Successful Dividend & Income Investing could generate early retirement; and, investing in your future has never been easier.
Whether you are 30 or 60 - whether you are investing for the future or saving in retirement - this Dividend Capture Strategy is for you. It is a must for every portfolio - whether you are investing $10,000 or $100,000 or already have a portfolio of income generating securities. Some of these high dividend paying stocks together with previous price appreciation have protected clients' wealth and earned double digit total returns. For many years, institutional and astute investors have used the technique of dividend capture to enhance investment returns. Our added benefit is the use of our proprietary cycle analysis research identifying stocks that may continue up in price after stocks trade ex-dividend.
EXCHANGE TRADED FUNDS NEWSLETTER:
This service is designed for the more AGGRESSIVE TRADER who understands that greater rewards often walk hand in hand with greater risk. Purchase recommendations are the result of one key indicator in our stable of indicators that has signaled a short term trade within the volatile area of ETFs which include some issues that can trade three times the up or down move of the underlining index. This newsletter uses a very short 3% Trailing Price Floor discipline and although results can often be impressive, losses occur also and must be tolerated by the trader. The trader should be prepared to continuously build the position in this portfolio in order for profits to outrun losses, which has been the case historically in every market cycle. Our Early Warning cycle analysis, which may be contrary to our longer term Investment Cycle indicator, is provided as a trading guideline for this portfolio.
WALL STREET TRADING LETTER:
This portfolio is selected a using the most volatile trading stocks and follows our very short term trading cycles. In many cases, if not in most cases, our Primary and Investment cycles are down and we are focusing on our shorter term cycles to attempt to identify a change in trend. This changing shorter term up cycle may just be for a few days before issues turn back down or may represent a true change in trend.
NYSE LISTED LOW PRICE STOCKS:
This Wall Street Money Tree Newsletter uses a strategy of developing a portfolio using stock selections of issues trading under $5 a share and is not managed using our trailing price floor concepts. Small cap portfolios require greater risk tolerance from investors. Gains can be impressive but losses should also be tolerated, if not expected. The constant unknown in the small cap arena is timing. No one can predict how long it will take for a recommendation to pan out, if it ever does. Stocks in this portfolio have paid off in a matter of weeks. Others take years. Some never work out. And that idea may be best described how you should utilize this portfolio. Never put money into this portfolio that you may need elsewhere over the next several years. All stocks selected are listed on the New York Stock Exchange. Using this strategy, we invest in a minimum of three selections at any given time. As soon as you sell a winner, buy another. This is the best way we have found to minimize the risk that can result from an occasional company failure.
THE BIOTECNOLOGY NEWSLETTER:
Many issues being tracked within the Biotech Sector are low priced mainly because they have no earnings as yet and tend to burn through a lot of money during their clinical trial periods. Many of these small Biotech companies hope to partner with big pharmaceutical companies in funding additional research. These successful collaborations result in the larger Pharmaceutical companies absorbing the small Biotech companies at a huge reward to its shareholders. Many of these smaller Biotech companies also carry the big risk to shareholders should the Federal Drug Administration (FDA) either denies their drug for public consumption or asks for additional information. When this happens, these stocks usually tank on the news as much as 50 to 60% and may never recover if they do not have additional potential programs within their pipeline. On the other hand, any approval by the FDA can explode the stock price upward and some of these smaller companies can grow rapidly or become takeover targets.
WALL STREET MONEY LETTER:
The purpose of this newsletter is to track the major component issues within those sectors making up the Standard & Poor 500 Index. For example, subscribers may select the major sectors of the S & P 500 Index as an overall indication of the market movement for each specific sector, or subscribers may scroll down to the component that make up each sector and select specific stocks within a particular sector.
Thank you for subscribing. We look forward to a long and mutually profitable relationship with you.