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A Remarkable Conversation With Legendary Investor Dr. Bart DiLiddo

Saturday’s  International Online Forum presentation and wide-ranging conversation with VectorVest creator Dr. Bart DiLiddo was a special treat. We learned valuable concepts and methods for Worry-Free Investing, and we received some timely guidance on what we might expect after Tuesday’s US presidential election. You don’t want to miss the replay. Click here to get the video.

Mura M. said, “Fantastic presentation. It’s an honor to be here to hear it.”

John M. said, “WOW. I enjoy your work Stan but hearing Dr. D. and yourself work together was an exceptional experience. Thank-you both for providing this opportunity.”

David A. chatted in: “THIS IS AN OUTSTANDING DISCUSSION. THANK- YOU.”

HIGHLIGHTS. We had just 75 minutes or so with Dr. D, but it’s amazing how many interesting stories and valuable insights he was able to deliver.

  • Prior to the stock market crash of 1987, I could see that in the month of September our Buy/Sell ratio was going down, so I turned cautious. In October we had that horrible crash when the Dow Jones Industrial Average dropped 20% in one day. When I thought about it, I said you know, this little system here gave us plenty of warning that the market was going to go down. We were in a position of protecting our portfolios.
  • After that crash, I felt that investors needed to have a guide of some kind that would give them confidence in investing again. So I wrote the Guide to Worry-free Investing. Earlier this year we changed just one thing: we put in RS or Relative Safety in places where I had VST, our Value, Safety, Timing indicator. VST is still good, but RS is a wonderful indicator, especially for the long term investor.
  • If I were to advise my grandmother to start investing, I would tell her to start investing along the lines of Worry-free Investing. I absolutely believe that this is the Safest, Surest and Easiest way to make money in the market. The sooner you start the better it’s going to be. Young people have an advantage. They have time on their side. They don’t have to take a lot of risk. You can start Worry-free Investing anytime, the earlier the better.
  • I suggest that you don’t buy a stock without looking at its graphical performance because a graph is like the DNA of a company. It’s the DNA of a stock. We advocate you buy stocks that have smooth upward rising profiles from the lower left to upper right. And when you see a stock like that, and it’s a Buy Rated, high Relative Safety stock, you’re going to have a long term winner.
  • Our Stop prices are guides. They are not mandatory. When you see a stock that has a Sell Recommendation, it’s not a verb. It means you don’t have to sell it, but you should think about it.

How should investors prepare for the US Election. “I wrote in the Views Friday that anything can happen. First of all, we don’t know who’s going to win. Secondly, we don’t know what the reaction’s going to be. So what I did personally, I bought a straddle. A straddle is an options play where you buy a call at the money and you buy a put at the money. If the market goes up the call’s going to make money and the Put will lose money. But the Put didn’t cost that much, and you hope the Call goes up enough that it will pay for the Put and leave a profit for yourself. And if the market goes down, the Put’s going to make money and the Call will lose money, and you hope that the Put will go down enough that you’ll make a profit on that side of the trade. The one thing I did, I picked an expiration date of next Friday.” Investors should be cautious and defensive until results are known but be prepared for a strong rally once the uncertainty is over.

Q. What are thoughts about Gold going forward when considering the election and perhaps especially the Italian exit vote on December 4. A. It could go up big time. I gave a presentation in Toronto on that subject titled, Go For the Gold. The essence of that presentation is that the Central Bankers around the world have done crazy things. They have printed money and printed money, and they keep making the same mistakes over and over again.

Again, for a complete recording of this ‘must see’ International Online Forum video, click here.

For a follow-up discussion, please join me Tuesday, November 8 at 12:30 pm Eastern / 9:30 am Pacific for our weekly Q&A webinar. Click Here to Register.

Previous Forum Replays. Click on any of the following links to view a replay of previous International Online Forums:

November 5 – Guide to Worry-free Investing with Dr. Bart DiLiddo

October 1 – Running With Momentum: Momentum ETF Portfolio; and Jamin Heller’s Enhanced Trade Analysis and Risk Management Spreadsheet.

September 10 – Trading Pullbacks: Possible entry and exit points combining candlesticks and the 10 EMA and 30 EMA by Wendy Johnson, Arkansas User Group Leader; and 5-Steps to Profitable Bottom Fishing by Stan Heller.

August 6 – Three new ways to trade 3/8 EMA Crossovers by Petra Hess, Burlington UG Leader and How to Use QuickFolios to find what’s hot and what’s not, by Stan Heller.

July 4 – Keep it Simple! Lesson from Regina, SK User Group presented by Irwin Blank; and Finding Trade Ideas using Price, Volume and ADX/DMI, presented by Stan Heller.

March 5 – Best Stock Ideas and Analysis Methods presented by Canada’s User Group Leaders and Members.

Feb 6 – Relative Safety Driver – A new search and trading strategy by Rick Rodgers and How to Use Custom Field Builder for Candlestick Searches by Graham Jones.

Jan 2 – Lessons from the Derby Jockey Club by Audrey Kelliher; Industry Group Analysis Methods by Bob Binfet; and How to Set-up and Manage Your Portfolio for 2016 by Petra Hess.

Dec 5 – Simplify Your Trading Using the 3/8-EMA by Petra Hess; Portfolio Management Using WatchList Graphs by Mike Simonato; Energy Sector Analysis by Michael Wuertherick; Bank Sector Analysis by Marcia Elgie and Emanuel Althuis; and Business Services Industry Group Analysis by Sandy Cook.

Nov 7 – Jake’s Patent Winners by Jake Pattinson and How to Bottom Fish and Covered Calls by Emanuel Althius.

Posted by Stan Heller, Consultant, VectorVest Canada

DISCLAIMER: The information contained in this Blog is for education and information purposes only. Example trades must not be considered as recommendations. You should always do your own analysis and invest based on your own risk tolerance, investment style, goals and time horizon. There are risks involved in investing and only you know your financial situation, risk tolerance, financial goals and time horizon.

 

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