Jarrod Bailey

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  • These Stocks Are Still Solid Long-Term Picks

    By Jarrod Bailey - May 15, 2013 | Tickers: LLY, MRK, PFE

    Confirmation bias – one of the psychological traps investors can be most prone to falling victim to. What happens to us as investors when we are influenced by this bias is we essentially discount all information that counters our established view point. If we are bullish on a particular stock, then confirmation bias will mean we will tend to overemphasize the importance of bullish news relative to bearish news. Confirmation bias more »

  • Why Loss Aversion Can End up Costing You Big Time

    By Jarrod Bailey - April 24, 2013 | Tickers: AIG, BAC, C

    I have written about it numerous times, but it is a point worth repeating and reiterating that is –

    An investor's psychology will likely influence their portfolio returns more so than the financial analysis they perform.

    With this in mind, I am focusing in my current articles on the significant and various psychological traps investors and traders fall victim to. Often, without even realizing, they have done so. It is more »

  • Bank of America - Seeing the Forest From the Trees

    By Jarrod Bailey - April 23, 2013 | Tickers: AIG, BAC, C

    Bank of America (NYSE: BAC) recently announced its first quarter results. Despite net income of $2.6 billion, up from $653 million in the year-ago quarter,  shares declined by 4.5% in response to the report.

    Why? Analysts had estimated the company would produce earnings of $0.22 per share and the result on a per-share basis was $0.20.

    If we refer to my earlier articles outlining a bullish more »

  • Bank of America - Seeing the Forest from the Trees

    By Jarrod Bailey - April 17, 2013 | Tickers: AIG, BAC, C

    Bank of America (NYSE: BAC) announced their first quarter results yesterday. Despite a net income of $2.6 Billion, up from $653 million in the corresponding previous quarter the shares declined 4.5%.

    Why? Analysts had estimated the company to produce earnings of 22 cents / share the result on a per share basis was 20 cents.

    If we refer to my earlier articles outlining my bullish case for Bank or more »

  • Loss Aversion – Being so Afraid of Losing you end up Costing yourself big time!

    By Jarrod Bailey - April 17, 2013 | Tickers: AIG, BAC, C

    I have written about it numerous times but it is a point worth repeating and reiterating that is –

    An investors psychology will likely influence their portfolio returns more so than the financial analysis they perform.

    With this in mind I am focusing in my current articles on the significant and various psychological traps investors and traders fall victim to. Often without even realising they have done so. It is these more »

  • Overconfidence - You are not as good as you think you are

    By Jarrod Bailey - April 16, 2013 | Tickers: AIG, BAC, C

    Time and time again as an analyst and investor I see that everyday investors damage their returns because of unrecognized psychological factors. These naïve investors unwittingly see their returns curtailed and damaged because they are not even aware of the mistakes they are making. In short – they don’t even know that they don’t know they are making errors.

    One of the biggest psychological factors that trips everyday investors more »

  • Cyprus: Calm Investors Are Laughing at the Buying Opportunity!

    By Jarrod Bailey - March 29, 2013 | Tickers: XOM, JNJ, NES.DL

    Panic roiled the markets in pre-market trading recently. Why? The government of Cyprus announced they were planning to instigate a tax on its citizens' bank accounts in an attempt to generate further tax revenue to meet its targets for the IMF/Euro bailout fund. 

    I find situations such as this recent ‘Cyprus event’ intriguing. They are intriguing because they offer excellent insight into the inner workings of the psychology of more »

  • Companies That Print Money!

    By Jarrod Bailey - March 21, 2013 | Tickers: AAPL, XOM, PFE

    Sometimes, as investors, we can lose sight of the bigger picture. We can get caught up in the latest fad and complex indicators, hoping to get an edge. In reality, we may be better off simply observing what the majority of the market and other investors are doing, then just do the opposite.

    Far too many people focus on trying to beat the market, and in doing so end up more »

  • Cyprus.. Calm investors are laughing at the buying opportunity!

    By Jarrod Bailey - March 19, 2013 | Tickers: XOM, JNJ, NES.DL

    Panic roiled the markets in pre-market trading on Monday. Why? The government of Cyprus announced they were planning to instigate a tax on its citizens bank accounts in an attempt to generate further tax revenue to meet its targets for the IMF / Euro bailout fund.

    As investors in global stocks surely it is ludicrous to decide the value of US Based global giants should decline by in some cases 2-3 more »

  • There Is Big Money in Drugs.. Legal Ones!

    By Jarrod Bailey - March 18, 2013 | Tickers: LLY, MRK, PFE

    One thing that many investors become fixated on is always wanting the next 'hot tip' or the 'inside word.' Forever seeking an edge on everyone else, investors seek the holy grail of critical company knowledge that will allow them to score that big profit.

    What about if we considered the following? Instead of trying to figure out which is the most undervalued company; we focus on how we can best more »

  • When the World Recovers Will You Profit?

    By Jarrod Bailey - March 18, 2013 | Tickers: AA, KGC, X

    The global financial crisis (GFC) was a reality check for many across the world. Within just a few months the realization that assets don't continuously rise was suddenly and abruptly realized.

    As with every cyclical shift from bull to bear market, the market overreacted. During the bull market prices overshot, assigning lofty and overly optimistic valuations to stocks. Similarly in the subsequent bear market that savaged the S&P500 more »

  • Which Pharmaceutical Stock Should You Invest In?

    By Jarrod Bailey - March 7, 2013 | Tickers: LLY, MRK, PFE

    A common trap many investors fall into is becoming overly confident in their views. This leads to wagering too much on a single outcome.  We all know these investors - those who just ‘know’ a stock they are going to invest in is a 'sure thing' or a 'gift from God investment.'  We also all know how this typically ends--the investor trying to explain to his wife why they lost the more »

  • Invest in these Companies During an Inflation Bull Market

    By Jarrod Bailey - March 5, 2013 | Tickers: XOM, MRK, AUY

    Most fund managers, if you asked them in private, would likely concede that buying a 30 year bond with a yield that is less than inflation is not an ideal long term investing strategy.  Yet the current price of bonds suggests the actions of the majority of investors runs counter to this. You see, it is the actions of investors, not the sound bites they (and the talking heads on more »

  • Truckers of the Bullish Kind

    By Jarrod Bailey - March 5, 2013 | Tickers: CAT, CMI, DE, IYT

    The transport sector, savaged throught the Global Financial Crisis (GFC), has since recovered. After climbing back to its 2008 levels at the end of 2010, it essentially tracked sideways for two years. Is 2013 the year that the transport sector makes up for lost time? Take a look at this chart of the iShares Dow Jones Transport Average ETF (NYSEMKT: IYT).

    <img src="/media/images/user_16314/iyt_large.JPG" />
     

    The iShares Transport Average now looks to be pushing more »

  • Big Oilers - Big Profits

    By Jarrod Bailey - February 27, 2013 | Tickers: BP, CVX, XOM

    I am bullish on the oil sector. I am bullish because of what I see as fundamental and structural reasons. The prime reasons that make me bullish on the Oil sector are:

    1. The easy oil is gone – With most of the easy to reach, known reserves of oil already being drilled what remains will be more costly to extract. Initially this may appear to be a bearish feature, however, it more »
  • Stocks or Bonds - The Eternal Debate!

    By Jarrod Bailey - February 25, 2013 | Tickers: BAC, KO, PFE

    One of the aspects that makes investing so interesting is the enormous impact psychology has on results (and profits) people achieve (or don’t).  What makes this so fascinating is there is an absolute plethora of information and research out there available for investors to utilize to educate themselves, yet so few do.

    One such instance where the effect of psychology has impeded investor returns in the eternal battle of more »

  • Who Are You Banking On?

    By Jarrod Bailey - February 15, 2013 | Tickers: AIG, BAC, C

    Editor's Note: This version has been modified to more accurately reflect AIG's business classification

    The big finanical companies have been on a roller coaster ride. From soaring heights pre-Global Financial Crisis (GFC) to almost being wiped off the face of the planet, it is fair to say it has been volatile for this sector.

    As an investor, though, it is critical to be able to take that proverbial more »