John Hood
Portfolio Manager at Croft Financial Group
Member since: Oct '09 · 1983 Opinions
Rating Card
Premium content| All | 
Rating
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Big Win
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Win
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Neutral
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Loss
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Big Loss
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|---|---|---|---|---|---|---|---|
| 4.36 | 134 22.15% | 174 28.76% | 178 29.42% | 101 16.69% | 18 2.98% | ||
| 1 Month | 4.24 | 5 3.79% | 39 29.55% | 73 55.30% | 14 10.61% | 1 0.76% | |
| 6 Months | 4.24 | 9 6.98% | 44 34.11% | 47 36.43% | 24 18.60% | 5 3.88% | |
| 12 Months | 4.31 | 21 16.80% | 40 32.00% | 29 23.20% | 31 24.80% | 4 3.20% | |
| 2 Years | 4.48 | 40 33.33% | 37 30.83% | 19 15.83% | 19 15.83% | 5 4.17% | |
| 5 Years | 4.52 | 59 59.60% | 14 14.14% | 10 10.10% | 13 13.13% | 3 3.03% |
Stock Opinions by John Hood
Geopolitical risk is always there under the surface. The thing is, Iran doesn't have many friends. Both Assad and Hussein are gone, Hezbollah has been smashed, and Hamas is under ongoing attack. So geopolitically, doesn't think there's a huge risk here. The US is pretty dominant in this area.
Trying to predict Trump is like trying to use a Ouija board. You just don't know, and he sometimes wonders if Trump really knows. In markets like this, it's very important that investors know what they're going to do. He often says that he doesn't know what markets are going to do, but he knows what he's going to do in different types of markets. You need to have a strategy if the market drops 5%, for example. For him, he ignores it. At 10%, he starts paying attention. At 15%, he starts adding back in. At 20%, he adds another 5%.
Look at your asset allocation risk tolerance (and understand what it means), and make sure you have good-quality assets. If markets decline, you can be reasonably confident they'll come back and it gives you a great opportunity to buy more.
The last thing you want to be doing is buying into a market that's at its highs for fear of missing out. The other bad thing is panicking and selling when markets are down. It's the old buy high, sell low; exactly the opposite of what you want.
Nothing wrong with this, but he tends not to write calls on something that's high volatility (like commodities or the Mag 7). Writing calls on something that's volatile severely limits your upside potential, but doesn't protect you that much on the downside. You're not getting much income relative to the risk. Real options traders like this, however, because the premiums on the options are so rich.
What he wants in his covered call strategy are dividend payers, and a more conservative approach.
Advertises a 15-16% yield. You have to ask yourself how come? T-bills are paying only 2-2.5%. Price has dropped appreciably since its IPO 2 years ago, just look at the chart. There are 2 types of ROC: return ON capital, and return OF capital. So this is giving you back your own money and adding it to the posted yield number. Wouldn't touch it.
