Like the oaf with a lampshade on his head at the end of a very long party, the market is headed for a hangover -- if, that is, it's not experiencing one already. Just check this chart for all of this year's stomach-churning action, and ask yourself -- given the overall downward spiral we've been on -- whether maybe, just maybe, an intervention might be in order.
As any psychiatrist worth his or her couch can tell you, we can only control our own actions. For all too many of us, that can be tough to do. For instance, we may choose to get active during troubled times and double down on AT&T
AT&T currently clocks in at a level more than 25% below its 52-week high, a low-water mark exceeded by the likes of General Electric
Just the facts, ma'am
Those facts, of course, could be excellent news for prospective investors with time on their hands and the inclination to determine whether this clutch of money-losers has hit bottom -- just sticking with the metaphor here, folks -- and is ready to sober up for shareholders. At these prices, the question is: Are these companies values or value traps?
If it's your passion to get to the bottom of fiscal mysteries such as those outlined above, then it's time to hit the balance sheets, gauging top-line revenue growth (where eBay looks like a strong contender), cash flow (AT&T deserves a look there), and earnings expectations (Cisco boasts a five-year forecast in excess of 15%) against a dicey economic backdrop that could, of course, always become dicier still.
However, if you already have a full-time job -- not to mention friends, family, and a plasma television you'd like to spend quality (and quantity) time with -- you probably want a solution simpler than balance-sheet number-crunching during your downtime.
Am I right? Am I right?
Here's a Foolish proposition: Complexity is the enemy of wealth. Thus, the best portfolio for the vast majority of us is a compact, low-maintenance lineup that can see us through up markets and down, en route to what the game of Life dubbed "Millionaire Acres" back when we were in our Brady Bunch heydays.
Not coincidentally, those are the premises behind the Fool's brand-new Ready-Made Millionaire service, where our no-muss, no-fuss mission is to enrich members by delivering market-beating performance via a compact portfolio -- and to do so in a way that aligns with Foolish values. To that end, we have plenty of "skin in the game." A million dollars of the Fool's own money is invested in the Ready-Made portfolio, too. The upshot? In addition to providing investment guidance, the Fool is a member of the service as well. When it comes to determining whether our low-maintenance portfolio is managed with your best interests at heart, few details will ever tell you more than that one.
As I type, RMM is currently closed to new members, but not to worry: We're set to reopen next month. To tide you over 'til then, click here to learn more about the service and to grab a completely free copy of our special report, The 11-Minute Millionaire, which offers a clutch of tips for navigating up markets and down.
See you in October!
This article was originally published on June 25, 2008. It has been updated.
At the time of publication, Shannon Zimmerman didn't own any of the securities mentioned above. eBay is a Motley Fool Stock Advisor recommendation. You can check out the Fool's strict disclosure policy by clicking right here.
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