Don't Get Burned By Hot Stocks (and How To Find Good Ones) Early this past summer, I got a call from a fellow whose portfolio had lost almost one third in less than two months while the market was moving steadily higher. When I asked how this happened, he said he was "investing" in hot tips he got online. I came across an even more troubling situation last year when speaking with the sales assistant of a stockbroker whom I had known for a long time. The broker was an amiable gentleman who built a sizable practice based on a carefully cultivated image. He was a tall man, with a neatly trimmed gray beard, and always wore gold-framed granny glasses. His semicircular desk held a half dozen large monitors, each of which had a colorful chart or table prominently displayed. There was little beyond the image. Although his background in investing was one step above nonexistent, his "marketing efforts" succeeded in rounding up hundreds of accounts. Sad t
Investment and economic observations by N. Russell Wayne, CFP, MBA. Mr. Wayne is the president of Sound Asset Management, inc. and former Managing Editor of The Value Line Investment Survey.