Do you have a strategy on how to best protect profits when the market gets volatile? Should I start Dollar-Cost Averaging?
If I were a value manager with predominately financial stocks, I would be a wreck right now. But since I am a growth manager, I am not worried, since the stocks on my Buy Lists have strong sales and earnings. What's more, their price/earnings (P/E) ratios remain at more than a decade low.
The fact of the matter is, Wall Street likes to shoot first and think second. Market volatility is not pleasant, but it's not uncommon, either. My Buy List stocks (especially my Blue Chip stocks) are among the first to recover from any market downdraft since their earnings are far superior to the overall stock market's.
However, instead of Dollar-Cost Averaging, I believe the best way to protect your profits in turbulent markets is by making sure you’re diversified and following my 60% Conservative, 30% Moderately Aggressive and 10% Aggressive recommended allocations.
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| Video Demo |
| Stock | Symbol | Grade | |
|---|---|---|---|
| BP PLC (ADS) | BP | B | BUY |
| Chevron Corp. | CVX | B | BUY |
| Exxon Mobil Co | XOM | C | HOLD |
| Hess Corp. | HES | A | BUY |
| PetroChina Co. | PTR | B | BUY |
| Sunoco Inc. | SUN | D | SELL |
| Tesoro Corp. | TSO | F | SELL |
| Stock | Symbol | Grade | |
|---|---|---|---|
| Brinker Intern | EAT | C | HOLD |
| CBRL Group Inc | CBRL | D | SELL |
| Cheesecake Fac | CAKE | C | HOLD |
| DineEquity Inc | DIN | F | SELL |
| P.F. Chang's C | PFCB | C | HOLD |
| Ruby Tuesday I | RT | F | SELL |
| Ruth's Hospita | RUTH | F | SELL |







