Superperformance stocks: An investment strategy for the individual investor based on the 4-year political cycle

256 Pages·1977·12.14 MB·English

by  Richard S. Love

Contents
Parti
The Search for a Successful
Investment Strategy
Chapter 1 Buy to Keep or Buy to Sell? 3
The Concept of Growth 4
The Cyclical Approach 5
Evaluate the Political Climate 7
Is Inst~utional Investment Strategy Changing? 9
Stock-Price Cycles 10
Reading the Long-Term Charts 11
Being Wrong Can Be Painful 15
The Disadvantages of the Buy-Sell-Buy Approach 16
Part II
When Should You Buy Stocks?
Chapter 2 Business Cycles 21
Chapter 3 Washington Policies 25
Economic Control Through Fiscal and Monetary
Policies 26
Follow the Political Cycle 27
Inflationary Policies 28
Economic Planning vs. Political Reality 30
Federal Monetary Policy and Stock Prices 32
Do Not Be Misled by Short-Term Monetary Trends 33
Chapter 4 The Political Cycles 35
The Biggest Boom and Bust, 1927-32 39
The Roosevelt Recovery and Recession, 1932-38 40
World War II and Immediate Postwar 44
Cycle 1: 1949-53 44
Cycle 2: 1953-57 45
CycleS: 1957.00 46
Cycle 4: 1960-62 48
Cycle 5: 1962-66 49
Cycle 6: 1966-70
51
Cycle 7: 1970-74
54
CycleS: 1974-
55
Summary of the Stock-Price Cycslei 56
Chapter 5 Look for Low Risk 59
Buy During the Selling Climax
59
Trade With the Market's Primary Trend
61
Part III
lMlich Stocks Should You Buy?
Chapter 6 Safety First 67
The Biggest Also Decline 67
Price Trends of Income Stocks 68
Most Stocks Are Price-Cyclical 71
Buy for Large Capital Gains 72
A Superb Company Does Not Necessarily Have a
Superb Stock 72
Chapter 7 Superperformance Stocks: The Record 75
Features of Superperformance Price Action 77
Superperformance and Company Earnings 77
Superperformance and Company Size 79
Superperformance and Subsequent Stock-Price
Action 80
Characteristics of Superperformance Stocks 81
Chapters Look for Price Volatility 83
Stock Prices Reflect the Law of Supply and
Demand 84
A Tale About Volatility and Timing 87
Price Distortions by Stock Exchange Specialists 89
Look for Rebounds 91
Which Stocks Rebound? 92
Emotional Selling and Trend Following 94
Leverage 96
The Dangers in Leverage 99
Leverage in Low-Priced Stocks 100
Leverage in Warrants 101
Chapter 9 Look for New Earning Power 105
Change and Stock Prices 105
Change Resulting From Discoveries of Natural
Resources 107
Change in Government Policies 107
Technological Change 109
Growth-Stage Companies 110
Mature Companies 112
Use Caution When Selecting Growth Stocks 114
Good Management Is Vital 115
Turnaround Situations 115
A Comparison of Two Growth Stocks 116
Anticipate Growth 119
Earnings Explosions 122
Be Skeptical of Reported Earnings 124
Reported Earnings Depend on Accounting
Procedures 124
Higher Earnings Are Usually Anticipated 125
Earning Trends Affect Superperformance Price
Action 125
The Role Future Earnings Play in Stock Prices 126
Evaluate Reported Earnings 127