Staying Safe In A High Risk Market

Where do you stand on the end of the third quarter of 2005? Are you making money on your bill this year? There is only one quarter of the 2005 left! The total market averages have not done well at all! At first glance it seems that if you took own large cap growth stocks, such as the well-known blue chip Dow and the S & P 500 index dominate your money might have been better off on the sidelines!
Once again, another quarter rolled by true small caps, foreign markets, technology and raw materials have run the table. And these sectors are becoming more and more buy signals, even today flashing the day. It's not too late! This is a sector driven market. These investors with money in the right sectors will do well. Those who "along for the ride" will be waiting at the curb.

Staying safe in a High Risk Market 

There are many paths you can take when things start to move against you in the market. Some of the other methods of sales calls against your individual stocks, buying inverse inverse market funds and index funds. You can also move to other types of investments such as foreign markets and raw materials (as mentioned earlier, both areas have skyrocketed this year). You could always money in bonds, as interest rates in your favor. Keep in mind that bond prices go up and down, so you always have your client fluctuating in bond investments. Always.
One of the very simple, and yet, one of the most important steps you can take is to do a bit. Cleaning Throw the files that just do not seem to fit, or offer little hope of coming back anytime soon.

Looking Backward 

From time to time, I will judge a backward position. That is, I will look at the trend graph and patterns, the strength of the sector, look at the relative strength of the stock against the market and the peer group.

At that time I will step back and decide if this is something I would like to buy today. Not hold, but rather, buy today. You really love it.

Once I make a decision that I have made, a buyer only then I will look at the NAME of the stock.

Try it, you may be surprised with your decisions! You see, many times we look at the name of a stock that we really like and we are pre-disposed to a "pass" if it is not performing. Sometimes, our subconscious has already had the idea for a step!

Now, if you want to try on your own business, this experiment than in tom@mullooly.net email me and give me the names of a few stocks you care about. It has more than one stock, I have to mix and remove the names, so you can not say what I can send for the first time. Map As I mentioned before, the results may surprise you!

A strategy can not see us as we are in a high risk is doing nothing, and just "sit this dance." You've worked too hard to get where you are financially, the last thing you should do is unused and let the market take your profits away from you.

Reducing the risk of a loss in your account is what should be of utmost importance when the market is on shaky ground.

Thomas P. Mullooly, President of Mullooly Asset Management, LLC  has more than twenty years spent in the investment world, as a broker and as an investment advisor. Mullooly Asset Management is a fee-only registered investment advisory firm based in New Jersey, specializing in retirement accounts, especially the management of 401k, 403b, and deferred compensation accounts for individuals. Feel free to contact us to check the relative strength of your portfolio by sending an email to tom@mullooly.net or visiting  or sign up to get market report and tips on how to invest your money on healthy