Does the Moon Have Covers?

Recently, one late winter night, my four-year old son and I counted stars with one another. After a few minutes, he pointed to the bright moon and asked, "Why doesn't the moon have covers?"

"Covers? What do you mean?" I inquired. And in his own boyish terminology, he launched into a long description justifying the moon's requirements for blankets to protect itself against the weather's elements. To me, his ideas were plausible and thoughtful.

As an investor, it may serve you well to consider your portfolio's protection. Have you protected your investments during this year's volatile cold snap and will you have the necessary diversification to enjoy a potential market re-heating? The following may assist you in all types of markets.

For individual stock investors, a defensive posture served them well during the recent bear market. By employing "tight" stop losses, they created downsize protection. Even if the sell price seemed undesirable at that particular time, building a cash position with such proceeds allowed investors a chance to re-enter the market at lower levels. Risk of principal still existed in such scenarios and this strategy will not guarantee you a positive return. For many, this strategy is not proper.

If your portfolio is growth oriented, no income generation necessary, it is important to keep focus on your pre-determined investment philosophy. Even so, you should not ignore the short-term. Pay close attention to market behaviors and stick to your plan. I would speculate investors of Enron had long term goals, but little or no exit strategy. It is better to know and profit, than buy another's high price and blow it!

According to the 2001 book entitled Are You Normal About Money? by Bernice Kanner, seventy-two percent of mutual fund investors never read the accompanying prospectus. I admit the literature can be boring, however it can be extremely insightful as well. Look at the portfolio holdings and determine the primary sector allocations. You will also develop a good idea of the fund's turn-over ratio by reading the prospectus.

You should be aware of the driving forces behind all your funds' returns. Are your funds allocated in strong positions and equally strong sectors? Or, is the money manager hanging onto the dreams and ideas of yesterday, hoping that six-dollar stock will return to eighty by year-end?

It is a good idea to evaluate your portfolio periodically and ask yourself "Why do I own these positions?" Time passes and your goals either change or come to fruition. Seasons change and you should adapt accordingly, why not institute diligent tactics for your savings? The thought you put into such procedures may help protect your net worth.

Wardlaw's belief is that familiar life elements best illustrate practical investment strategies; not typical investment jargon. With that philosophy, the author assists financial planners/advisors, brokerage firms, periodicals, and other investment information syndicates create informative and entertaining articles. For comments and questions, please contact the author at tools2invest@yahoo.com or visit http://www.tools2invest.com

The Making Money Obsession - Discover The Real Truth

In most societies, we are raised to believe in the myth that "it's spiritual to... Read More

Money Mastery

Money can be your servant or it can be your master. The choice is yours... Read More

Cutting Costs Can Significantly Increase Your Income

As a work at home Mother, I know the value of a deal. Any smart... Read More

Pennies From Heaven

I want to share an experience I had in common as a child with Dr.... Read More

The Philosophers Stone

"If you know how to spend less than you get, you have the philosopher's stone"... Read More

Clearing Blockages to Increase the Flow of Money into Your Life

Money is probably the most challenging thing for many people to manifest. It can also... Read More

Online Retirement Opportunity: Freelance Copywriting

For most of us, the idea of retiring simply on our pension is not a... Read More

Five Straight Steps to Opening an Offshore Bank Account

Despite what you may have read or heard, anyone is free to open an offshore... Read More

Your Wealth Cycle Foundation

The four main steps in building a wealth cycle foundation are:· Pay yourself first ·... Read More

High Flying Market Makes Good Buys Hard to Find

AS THE MARKET FLIES HIGHER, GOOD BUYS ARE BECOMING HARDER AND HARDER TO FIND.Market activity... Read More

Investing is About Discipline

If you don't have discipline then walk away from the idea of being rich. You... Read More

Learn How to Bank Like a Banker

The business of banking has changed dramatically over the last decade. Because the cost of... Read More

Top 10 Secrets of Getting Rich!

As many people have observed, "Success leaves clues." If you want to achieve extraordinary success... Read More

Money Myths Of The Poor

From tender age, we were exposed to myths about money and myths of being rich.... Read More

Lesson 2 - The Commodity Of Kings!

What is "The Commodity of Kings""Power is simply "the ability to act." Since ancient times,... Read More

Wealth And Your Net Worth

Most people know it's important to keep and organize all of your vital financial information.... Read More

The Wealth Connection ? 2 Steps to Brighten Your Golden Years

Estimated Reading Time: 4 minutes -- Envision your life 10 or even 20 years from... Read More

10 Ways To Find The Money Hiding In Your Paycheck

No matter how tight things are financially for you; no matter how bleak you think... Read More

Do You Want To Save Money Easily?

Living on credit is fashionable. Indulging oneself is fashionable. Saving money isn't.This is a pity,... Read More

Still Using Federal Reserve Notes?(How to Beat Inflation)

"My people are destroyed for lack of knowledge." Hosea 4:6 This short article will address... Read More

Asset Diversification Is NOT Boring?And Will Make You Money

OK, this article will start with the cheapest piece of advice you will receive this... Read More

Anthony Robbins 12 Reasons Why People Dont Get Wealthy

According to Wallace Wattles, in his popular wealth treatise called the Science of Getting Rich,... Read More

Self Improvement and Financial Security for the Future

Any successful person, or any anyone interested in self improvement and making a better life... Read More

Does Money Grow On Trees?

"Money Doesn't Grow On Trees."Some of us even believe it. An orchard owner would say... Read More

Building Wealth: Its An Inside Job ? Part 2

Let's quickly review the principles discussed in the first part of building wealth. We established... Read More

The Three Step Plan To Prosperity

You have $100 in your bank account, your rent is past due, your creditors are... Read More

The Parthenon Principle

Have you seen a picture of the Parthenon in Athens, Greece? I will never forget... Read More

A New Paradigm Shift In Earthly Wealth

Hello,If you dont understand this yet, or have not heard of opportunity investment, you are... Read More

How To Get Investors And Bankers To Part With Their Money For Your Business

Time and time again entrepreneurs are losing out on getting the capital they need because... Read More

Jobless? You Stand To Be Rich!

This is a true story about a homeless man from Illinois. This man slept in... Read More

New Year Resolutions to a Better Financial Future

There could not be a better time to mull over the changes needed in our... Read More

Personal Budget Programs

Do you have financial problems? Then a budget is the answer if you are tired... Read More

A New Economic Policy

Anyone knows that material wealth is measured in goods: apples, cars, shoes, sheep, etc. When... Read More

What is Your Creative Retirement Plan?

The idle are a peculiar kind of dead that cannot be buried." Oriental proverbOne thing... Read More

Retirement ? Can You Afford It?

Every day you work is one day closer to your retirement. But can you afford... Read More

The Predicament of the Newly Rich

They are the object of thinly disguised envy. They are the raw materials of vulgar... Read More

Who Wants To be A Millionaire?

How many people search Google, Yahoo and MSN each day for the terms - make... Read More

Pay Yourself First - If the Only Thing You Did Was This, Youd be Rich

Bottom line. No exaggeration. No hype. If you want to be rich, all you have... Read More

8 Tips for Keeping More of Your Hard Earned Money

Masters degree not required...just a little common sense, a $5.00 calculator and a realistic plan... Read More

7 Golden Rules to Financial Prosperity

Not Enough Money?I believe that most people haven't got enough money for everything they wish... Read More

The Mathematical Formula For Making Money

No matter what markets you serve; what products you sell; or what marketing tools... Read More

Offshore Strategies & Services

Offshore strategies may or may not be right for you. Moreover, there is a right... Read More

Who Else Is Tired of Life Punching Them in the Face?

Remember the bloodied face of Randall "Tex" Cobb?He was a boxer who fought in a... Read More

7 Power Habits that Build Financial Independence

Financial independence is having the freedom to support yourself through your own efforts. Here are... Read More

Dont Leave Your Financial Success To Chance

Recently I was reading a book called The Millionaire Mind. The book offers an intriguing... Read More

Wealth Creation and Mortgage Planning - Two Great Tastes that Taste Great Together

What if I were to tell you that almost everything you have been told about... Read More

Who Will Become Wealthy in the Information Age?

As you know, we're now well and truly in theInformation Age. It began about 10... Read More

One Pipeline Is Worth A Thousand Paychecks

It is with great pleasure of having you here at this hour. Let me get... Read More

What it Means to be Rich

Many people have a false understanding of what it actually means to be rich. If... Read More

WARNING: The Biggest Lie About Social Security

Like I said, If you are poor and on social security do not, and I... Read More