Sam Stovall Sams Seven Rules of Wall Street: Crash-Tested Investment Strategies That Beat the Market | #11

Published: Aug. 8, 2016, 7:36 p.m.

Episode 11 features the always-fun Sam Stovall. Sam starts by making an unlikely connection between Clint Eastwood and investing \u2013 \u201cA man\u2019s got to know his limits.\u201d Being aware of his own limits, Sam put together a list of rules to help him win at the game of investing. He and Meb dive in, starting with \u201cLet your winners ride, cut your losers short.\u201d Easier said than done, as most of us tend to hold onto our losers, hoping they\u2019ll come back, while selling the winners (prematurely) to lock in gains. \u201cAs January goes, so goes the year\u201d is Rule #2. Sam compares investors to dieters looking for a fresh start every year. Rule #3 is a tweak on \u201cSell in May then go away.\u201d It turns out that\u2019s almost right, but not quite. The better strategy is \u201crotate rather than retreat.\u201d Do you know the two sectors which historically will boost your returns if you\u2019ll rotate into them during the summer months? Sam will tell you. Rule #4 challenges the idea that there\u2019s no free lunch on Wall Street. According to Sam, there is. If you construct your portfolio in the right way, you can increase your returns without a commensurate increase in risk. \u201cDon\u2019t get mad, get even\u201d is Sam\u2019s fifth rule. Too many investors are losing money\xa0because their portfolios are overweight in a few bad picks. So don\u2019t get mad, \u201cget even.\u201d In other words, look to shift your weightings to correct the imbalance. Rule #6? \u201cDon\u2019t fight the Fed, at least, for too long.\u201d For all you bears over the last few years, this seems especially appropriate. Finally, #7 is Meb\u2019s favorite: \u201cThere\u2019s always a bull market someplace.\u201d It turns out Sam and Meb share a fondness for rules-based investing. Sam has his own rules which help him identify these bull markets that are always happening someplace. What are they? Find out in Episode #11.\nLearn more about your ad choices. Visit megaphone.fm/adchoices