Kudos to Charles!
Barron’s gives the Kirk Report a terrific review, noting his "refreshing — and proven — approach to investing has made his blog one of the Internet’s best-read financial sites." They also discuss why he’s in cash.
Here’s an excerpt:
"UNSETTLING FOR THOSE WITH STRONGLY BULLISH or bearish convictions, Kirk decided back in November that the times were — with apologies to Dylan — "a-changin’." He moved to cash and, with the exception of a handful of trades, has remained on the sideline for the longest period of his stock-trading decade or so. "I don’t see a distinct advantage in being on either side of the market," he explains. He confesses to a lot of questions. Among them: How will earnings fare next year? Will housing fall apart? And how resilient will consumers be? "Until we get some clarification on those things," says Kirk, "the best thing for me to do is to sit and to wait."
The soft-spoken former Cornell philosophy and political-science major shares at least one preoccupation with the herd on Wall Street. "I have to figure out if the Fed is going to make the same mistake they did previously. Will they increase interest rates higher than they should? Or will Ben Bernanke do something different?"
Kirk blends judgments on these fundamental issues with technical analysis to arrive at an overall market view and specific trading plays (technical factors get a much heavier weight to determine individual trades). A self-confessed "stock-screen addict," he runs more than 200 different sortings a month in search of attractive trades. "The art of stock screening," he says, is to find the proper screen for current market conditions. Among his favorites are those that seek out poor-performing shares with good fundamentals or, for trading purposes, stocks with scant analyst coverage, little institutional ownership, positive money flow/accumulation, strong earnings and improving relative price performance.
"I’m a flexible chameleon — I go where the money is, and my strategies will vary quite a bit depending on market conditions and where the money is flowing," says Kirk, who got hooked on investing while working in a Motorola kiosk at a local mall about 10 years ago to help pay tuition at St. Paul’s Hamline Law School. (He realized the company was selling lots of flip-phones, bought the stock and ended up making about as much on the shares as he did hawking the phones.)"
Track record . . .
The Anti-Cramer: Highway 61 Revisited
Barrons, April 1, 2006 6:02 a.m. EST