2 Trades To Protect Yourself, And What's Next For The Market

Every day I face the question: Do You Protect Your Job or Your Clients’ Money? The above link points to an 11 page PDF by Jeremy Grantham in his latest GMO quarterly newsletter. Here are a few excerpts. Jeremy Grantham The central truth of the investment business is that investment behavior is driven by career risk. In the professional investment business we are all agents, managing other peoples’ money.

By David Sims:Finding and executing a lucrative ex-dividend trade is partly finesse and mostly diligence. There are lots of resources available that will help you identify stocks that have high dividend yields. Taking a position in the stock by choosing a purchase price and a profitable exit point is an entirely different aspect of the trade.

Behavioral Analysis of Amazon.com (AMZN)Reminder: This analysis has nothing to do with illusions or investor mistakes. It is a study of how well-informed, highly-paid, essential investment professionals protect themselves when required to be at risk in specific securities.

ChartProphet submit:At a time when markets are constantly threatened by a sudden and potentially severe correction, it is very important for investors to properly manage risk. The market could continue its run, which it has enjoyed for the bulk of the past two years, especially since this past September.

(Adds other probe details starting in eighth paragraph.)

By Takeover Analyst:I have stated it before and I will state it again: Barrick Gold (ABX) is a "Hedging Miracle." I anticipate that lower-than-anticipated cuts to the government will pique ever-greater interest in gold as a protection against inflation.

Andy Zaky submits:A common question on many investors' minds this weekend is how do I protect my Apple (AAPL) profits in 2012 leaps as Apple heads into earnings next Monday. On the one hand, after seeing Google's (GOOG) meteoric 10% surge after earnings, it's hard to swallow taking profits especially if Apple ends up gapping up $20-$30 after earnings.