This is Why Your Portfolio Has to Include Spinoffs
Feb 9, 2018
Almost every investor is a winner in a rising market. Why? Well, primarily two reasons. The natural inclination for most investors is to buy stocks (rather than shorting) and, as you well know, a rising tide lifts all boats. Easy money if the market compounds at +19% per year. The ETFs and all your picks that just follow the market up will make you money. Guaranteed. Look at you, you are a stock picker! Great job, give yourself a pat on the back.
You could possibly be in an underperforming situation this year if you decide just to buy and hold stocks without any sort of catalyst to make them move higher (assuming you are investing from the long side). It’s much the same on the short side.