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The market was generally good last week and should be good this week as well. Retail oriented stocks tended to have good announcements which may signal a positive couple weeks for any stock that is driven by consumer spending. More concern is on geo-political events that could cause a pullback. There is a very good chance that the week will be flat so individual stock choices will be important.

As always, my thoughts should only be used for educational purposes and any decision by the reader to use this information is subject to my disclaimer. In addition to the disclaimer, the stocks mentioned may have changed value from the time I wrote this to the time that you are reading it; therefore, the conclusions below may no longer be valid. The analysis on any investment indicator is always a short-term thought and just by being in this list the stock already is a long-term Good Company  or Fair Company and made my Watch List. If you are looking for long-term analysis of the stock, you should look for the stock in the company list that appears to the far right.

My analysis in this article is based on the investment indicator tools that I describe in my book, “The Confident Investor.” If you are not subscribed to this site as a book owner, then you will not be able to see some of the analysis. You can purchase my book wherever books are sold such as Amazon, Barnes and Noble, and Books A Million. It is available in e-book formats for Nook, Kindle, and iPad. After you purchase my book, it is free to subscribe to the extra content on this site. 

I will only be commenting on stocks that are ranked as an “Investigate to buy” and Possible buy” on my daily investment indicator article. The most recent daily investment indicator article is from July 26. Those stocks are:

  • Apple Inc.,
  • ABIOMED Inc.,
  • Alexion Pharmaceuticals Inc.,
  • American Tower Corp,
  • ANSYS Inc.,
  • Apache Corporation,
  • Baytex Energy Corp (USA),
  • Buffalo Wild Wings,
  • Cerner Corporation,
  • Carter’s Inc.,
  • Deckers Outdoor Corp,
  • Equinix Inc,
  • Google Inc,
  • Helmerich & Payne Inc.,
  • JPMorgan Chase & Co.,
  • Annaly Capital Management Inc.,
  • Priceline Group Inc,
  • Royal Gold Inc USA),
  • Skyworks Solutions Inc,
  • Thermo Fisher Scientific Inc.,
  • Trinity Industries Inc,
  • Tractor Supply Company,
  • Under Armour Inc,
  • Yahoo! Inc.,

Investment Indicator Thoughts

S&P 500
The general S&P 500 (ticker is ^GSPC and the first line of my investment indicator articles). It was a tough week last week with this index seeing an early rise primarily due to good news of certain retail stocks and then falling at the end of the week but still ending the week slightly ahead. This was caused by geo-political events along with some less than excellent results for Q2. I think this week will also continue to have challenges with last week ending with negative MACD and Fast EMA underwater, so investors should be cautious.

NASDAQ Composite
The NASDAQ Composite (the ticker is ^IXIC and the second line of my investment indicator articles). It was a tough week last week with this index seeing an early rise primarily due to good news of certain retail stocks and then falling at the end of the week but still ending the week slightly ahead. This was caused by geo-political events along with some less than excellent results for Q2. I think this week will also continue to have challenges with last week ending with negative Fast EMA underwater, so investors should be cautious.

Apple Inc.
[s2If !current_user_can(access_s2member_level1)]Apple Inc. [stckqut]AAPL[/stckqut] had a very good week last week with good earnings …
The remainder of this investment indicator analysis is for registered owners of my “The Confident Investor” book[/s2If][s2If current_user_can(access_s2member_level1)]Apple Inc. [stckqut]AAPL[/stckqut] had a very good week last week with good earnings and good forecasts. I am bullish on this stock for at least a couple weeks. My suggestion is to think twice before exiting this stock. If you are not an investor in this stock, you should consider it.[/s2If]

ABIOMED, Inc.
[s2If !current_user_can(access_s2member_level1)]ABIOMED, Inc. [stckqut]ABMD[/stckqut] had a good week, last week. This continues a mu…
The remainder of this investment indicator analysis is for registered owners of my “The Confident Investor” book[/s2If][s2If current_user_can(access_s2member_level1)]ABIOMED, Inc. [stckqut]ABMD[/stckqut] had a good week, last week. This continues a multi-week growth of the stock. You should consider this stock for your portfolio.[/s2If]

Alexion Pharmaceuticals, Inc.
[s2If !current_user_can(access_s2member_level1)]Alexion Pharmaceuticals, Inc. [stckqut]ALXN[/stckqut] spiked at the beginnning of the…
The remainder of this investment indicator analysis is for registered owners of my “The Confident Investor” book[/s2If][s2If current_user_can(access_s2member_level1)]Alexion Pharmaceuticals, Inc. [stckqut]ALXN[/stckqut] spiked at the beginnning of the week and then pulled back at the end of the week. I think the spike was the right price and the pullback may offer you a chance to get the stock at a slight bargain.[/s2If]

American Tower Corp
[s2If !current_user_can(access_s2member_level1)]American Tower Corp [stckqut]AMT[/stckqut] pulled back with the market at the end of …
The remainder of this investment indicator analysis is for registered owners of my “The Confident Investor” book[/s2If][s2If current_user_can(access_s2member_level1)]American Tower Corp [stckqut]AMT[/stckqut] pulled back with the market at the end of the week after setting a new 52-week high. When the Fast EMA and MACD improves this stock may be another buy.[/s2If]

ANSYS, Inc.
[s2If !current_user_can(access_s2member_level1)]ANSYS, Inc. [stckqut]ANSS[/stckqut] has been trading in a $4 range since March. We ar…
The remainder of this investment indicator analysis is for registered owners of my “The Confident Investor” book[/s2If][s2If current_user_can(access_s2member_level1)]ANSYS, Inc. [stckqut]ANSS[/stckqut] has been trading in a $4 range since March. We are currently at the top of that range. Short-term history would suggest that we will see a pullback from here. If the stock exceeds $79, the channel may break and growth may be possible, otherwise I would advise caution.[/s2If]

Apache Corporation
[s2If !current_user_can(access_s2member_level1)]Apache Corporation [stckqut]APA[/stckqut] is at the top of multi-month run. You would…
The remainder of this investment indicator analysis is for registered owners of my “The Confident Investor” book[/s2If][s2If current_user_can(access_s2member_level1)]Apache Corporation [stckqut]APA[/stckqut] is at the top of multi-month run. You would be wise to add this stock to your portfolio.[/s2If]

Baytex Energy Corp (USA)
[s2If !current_user_can(access_s2member_level1)]Baytex Energy Corp (USA) [stckqut]BTE[/stckqut] is sitting close to its 52-week high….
The remainder of this investment indicator analysis is for registered owners of my “The Confident Investor” book[/s2If][s2If current_user_can(access_s2member_level1)]Baytex Energy Corp (USA) [stckqut]BTE[/stckqut] is sitting close to its 52-week high. The market will probably try to break that high in the next week or two.[/s2If]

Buffalo Wild Wings
[s2If !current_user_can(access_s2member_level1)]Buffalo Wild Wings [stckqut]BWLD[/stckqut] had a good run last week. It is sitting cl…
The remainder of this investment indicator analysis is for registered owners of my “The Confident Investor” book[/s2If][s2If current_user_can(access_s2member_level1)]Buffalo Wild Wings [stckqut]BWLD[/stckqut] had a good run last week. It is sitting close to its 52-week high. The market will probably try to break that high in the next week or two.[/s2If]

Cerner Corporation
[s2If !current_user_can(access_s2member_level1)]Cerner Corporation [stckqut]CERN[/stckqut] finished the week strong. Could have a goo…
The remainder of this investment indicator analysis is for registered owners of my “The Confident Investor” book[/s2If][s2If current_user_can(access_s2member_level1)]Cerner Corporation [stckqut]CERN[/stckqut] finished the week strong. Could have a good week.[/s2If]

Carter’s, Inc.
[s2If !current_user_can(access_s2member_level1)]Carter’s, Inc. [stckqut]CRI[/stckqut] blew away the analysts with a massive beat of i…
The remainder of this investment indicator analysis is for registered owners of my “The Confident Investor” book[/s2If][s2If current_user_can(access_s2member_level1)]Carter’s, Inc. [stckqut]CRI[/stckqut] blew away the analysts with a massive beat of its quarterly earnings. The stock spiked last week. Most of the run is probably done and if you were not an investor before the earnings, most of the party is likely to be over. Look for this price to hold and then slowly increase especially if Q3 hits expectations.[/s2If]

Deckers Outdoor Corp
[s2If !current_user_can(access_s2member_level1)]Deckers Outdoor Corp [stckqut]DECK[/stckqut] ended the week with a strong quarterly r…
The remainder of this investment indicator analysis is for registered owners of my “The Confident Investor” book[/s2If][s2If current_user_can(access_s2member_level1)]Deckers Outdoor Corp [stckqut]DECK[/stckqut] ended the week with a strong quarterly report. This stock may have a slight run this week as investors try to get on the earnings bandwagon.[/s2If]

Equinix Inc
[s2If !current_user_can(access_s2member_level1)]Equinix Inc [stckqut]EQIX[/stckqut] has been growing nicely for several months and ha…
The remainder of this investment indicator analysis is for registered owners of my “The Confident Investor” book[/s2If][s2If current_user_can(access_s2member_level1)]Equinix Inc [stckqut]EQIX[/stckqut] has been growing nicely for several months and had a good week last week. I don’t see any reason to not ignore short-term sell indicators for the next few weeks.[/s2If]

Google Inc
[s2If !current_user_can(access_s2member_level1)]Google Inc [stckqut]GOOG[/stckqut] pulled back last week with the market. The stock i…
The remainder of this investment indicator analysis is for registered owners of my “The Confident Investor” book[/s2If][s2If current_user_can(access_s2member_level1)]Google Inc [stckqut]GOOG[/stckqut] pulled back last week with the market. The stock is on a several week run and as long as the market is doing well, this stock will increase.[/s2If]

Helmerich & Payne, Inc.
[s2If !current_user_can(access_s2member_level1)]Helmerich & Payne, Inc. [stckqut]HP[/stckqut] has been growing well all year. Investo…
The remainder of this investment indicator analysis is for registered owners of my “The Confident Investor” book[/s2If][s2If current_user_can(access_s2member_level1)]Helmerich & Payne, Inc. [stckqut]HP[/stckqut] has been growing well all year. Investors should think twice before completely exiting this stock in the foreseeable future.[/s2If]

JPMorgan Chase & Co.
[s2If !current_user_can(access_s2member_level1)]JPMorgan Chase & Co. [stckqut]JPM[/stckqut] recently blew through 52-week resistance….
The remainder of this investment indicator analysis is for registered owners of my “The Confident Investor” book[/s2If][s2If current_user_can(access_s2member_level1)]JPMorgan Chase & Co. [stckqut]JPM[/stckqut] recently blew through 52-week resistance. Momentum is on the side of this stock. Investors may be looking to set a new 52-week high.[/s2If]

Annaly Capital Management, Inc.
[s2If !current_user_can(access_s2member_level1)]Annaly Capital Management, Inc. [stckqut]NLY[/stckqut] seems to be pulling out of its…
The remainder of this investment indicator analysis is for registered owners of my “The Confident Investor” book[/s2If][s2If current_user_can(access_s2member_level1)]Annaly Capital Management, Inc. [stckqut]NLY[/stckqut] seems to be pulling out of its recent drop. I don’t see a big run here but it could have a good week.[/s2If]

Priceline Group Inc
[s2If !current_user_can(access_s2member_level1)]Priceline Group Inc [stckqut]PCLN[/stckqut] had a nice bump a couple weeks back. Now …
The remainder of this investment indicator analysis is for registered owners of my “The Confident Investor” book[/s2If][s2If current_user_can(access_s2member_level1)]Priceline Group Inc [stckqut]PCLN[/stckqut] had a nice bump a couple weeks back. Now it is flat. No reason to buy for now but you may want to move to a faster growing stock if you currently are holding.[/s2If]

Royal Gold, Inc USA)
[s2If !current_user_can(access_s2member_level1)]Royal Gold, Inc USA) [stckqut]RGLD[/stckqut] has been holding its price for the last …
The remainder of this investment indicator analysis is for registered owners of my “The Confident Investor” book[/s2If][s2If current_user_can(access_s2member_level1)]Royal Gold, Inc USA) [stckqut]RGLD[/stckqut] has been holding its price for the last couple weeks. I don’t see any signs that that price will drop even though the indicators are hesitant. This stock will be affected by geo-political events and for now the world appears to be getting accustomed to the current state.[/s2If]

Skyworks Solutions Inc
[s2If !current_user_can(access_s2member_level1)]Skyworks Solutions Inc [stckqut]SWKS[/stckqut] came back down quite a bit after beati…
The remainder of this investment indicator analysis is for registered owners of my “The Confident Investor” book[/s2If][s2If current_user_can(access_s2member_level1)]Skyworks Solutions Inc [stckqut]SWKS[/stckqut] came back down quite a bit after beating expectations. Look for this stock to regain some of this pullback some time in the next few weeks.[/s2If]

Thermo Fisher Scientific Inc.
[s2If !current_user_can(access_s2member_level1)]Thermo Fisher Scientific Inc. [stckqut]TMO[/stckqut] had a great run last week early …
The remainder of this investment indicator analysis is for registered owners of my “The Confident Investor” book[/s2If][s2If current_user_can(access_s2member_level1)]Thermo Fisher Scientific Inc. [stckqut]TMO[/stckqut] had a great run last week early and has grown nicely for a year. This may be a stock that you just own and don’t worry about short term pullbacks for a while.[/s2If]

Trinity Industries Inc
[s2If !current_user_can(access_s2member_level1)]Trinity Industries Inc [stckqut]TRN[/stckqut] has had a nice run for a couple of week…
The remainder of this investment indicator analysis is for registered owners of my “The Confident Investor” book[/s2If][s2If current_user_can(access_s2member_level1)]Trinity Industries Inc [stckqut]TRN[/stckqut] has had a nice run for a couple of weeks. I seen no reason to sell in the short term.[/s2If]

Tractor Supply Company
[s2If !current_user_can(access_s2member_level1)]Tractor Supply Company [stckqut]TSCO[/stckqut] had a good enough quarter to stop its …
The remainder of this investment indicator analysis is for registered owners of my “The Confident Investor” book[/s2If][s2If current_user_can(access_s2member_level1)]Tractor Supply Company [stckqut]TSCO[/stckqut] had a good enough quarter to stop its mult-month drop. Not sure if investors will run up the stock from here but this may be a stock to watch for good news and therefore good growth.[/s2If]

Under Armour Inc
[s2If !current_user_can(access_s2member_level1)]Under Armour Inc [stckqut]UA[/stckqut] had another great quarter and the investors mo…
The remainder of this investment indicator analysis is for registered owners of my “The Confident Investor” book[/s2If][s2If current_user_can(access_s2member_level1)]Under Armour Inc [stckqut]UA[/stckqut] had another great quarter and the investors moved the stock considerably setting a new 52-week high. It is probably too late to take advantage of that move but earnings announcement was very positive so look for a multi-quarter stock growth strategy.[/s2If]

Yahoo! Inc.
[s2If !current_user_can(access_s2member_level1)]Yahoo! Inc. [stckqut]YHOO[/stckqut] has had very uneven pricing in a $4 spread for a …
The remainder of this investment indicator analysis is for registered owners of my “The Confident Investor” book[/s2If][s2If current_user_can(access_s2member_level1)]Yahoo! Inc. [stckqut]YHOO[/stckqut] has had very uneven pricing in a $4 spread for a couple weeks. Caution is advised on this stock.[/s2If]

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lottery photoPerhaps good news has come your way and you just won the lottery. Maybe it wasn’t the big multi-million dollar payoff, but instead a smaller prize that still requires you to maintain employment. Maybe you just received an inheritance from a beloved family member. What should you do now? (Hint: it isn’t going on a shopping spree).

The stories of blowing this windfall of winning the lottery or receiving an inheritance are legendary. Everyone has heard of true or imaginary receivers of windfalls that are now dead broke.

I sincerely hope that you win the lottery. I just hope that you are not playing it as an investment but rather as pure entertainment. Playing the lottery is an incredibly bad investment, therefore, please do not take this article as an endorsement of playing the lottery to get rich. It should be purely done as a method of entertainment and NOT the way to prepare for retirement.

But perhaps you received a ticket as part of a Christmas gift and won $40,000. Maybe your Great Aunt Sally passed away at the age of 104 and left you an inheritance of $25,000. How should you deal with the windfall of “found” money?

Make a donation of a portion of the inheritance

The very first thing you need to do is to give 10% of this inheritance to one or more charities. I don’t care which one you prefer, but I have a list if you are looking. Giving away part of this money is imperative. You just received a gift, and you should help to take care of your fellow man by giving to someone that is less fortunate than you. Make this donation within one week of receiving the inheritance – do not wait. You won’t miss the money, and if you think of helping others first, you will be unbelievably rewarded in good will.

Make one special purchase with the inheritance

You now need to buy ONE thing that is slightly extravagant just for you and your immediate family. The luxury item should not be more than 20% of the lottery winnings that you just received. If you just received an inheritance, make it something that is permanent in your home so that you will always remember the deceased when walking by the item.

When my wife lost her grandmother, she received many pictures and a cedar chest that is still in our bedroom. She also received a small amount of money that we used to help with the purchase of a dining room table. Now whenever we host a dinner at that table, her grandmother is in our thoughts and is part of that celebration.

My grandfather was a poor farmer in southern Illinois. When he passed away at 93 after years of frugal living, I purchased a grandfather clock that sits in the foyer of our home. Now, every 15 minutes, I am reminded of the things that great man taught me regarding the value of planning and understanding the markets.

You now have 70% of your inheritance

I now give you a choice. I don’t know your personal situation so I cannot give definitive advice, but I can give suggestions that fit nearly every financial condition.

1. Do you have short-term debt that has an interest of over 7%?

In this case, use as much of the 70% as you need to pay off that debt. Nothing is a better use of that money than to get rid of that debt. Pay it NOW! Don’t wait for your cousin to ask you for a loan. Don’t wait for that get-rich-quick scheme from you brother-in-law. PAY OFF YOUR EXPENSIVE DEBT!

2. If you don’t have expensive debt, do you have 20% equity in your home?

There are a lot of great things that happen when you have 20% equity in your home. You will probably get relief in some fees from your bank when you go over this magical number. Also, bankers are much more willing to have you refinance for a better rate if you have 20% equity. So use enough of your windfall to achieve this ratio.

3. If you have anything left from the inheritance, it is time to save for your retirement.

The simple fact is that you don’t need the money that you just won. This money is a windfall. Don’t leave it around where you can spend it. Put it into a special investment account and make your money work for you. If you use the money to buy STUFF then you will eventually not have the STUFF, and you will have no money. This behavior is terrible. You need to invest the money in great companies.

If you don’t know how to invest in the stock market, then this site is an excellent resource. I include a Watch List that has my current favorite investments. You can also buy my book, The Confident Investor, and that will guide you through the process of learning how to find great companies and successfully invest in them. You can purchase my book wherever books are sold such as Amazon, Barnes and Noble, and Books A Million. It is available in e-book formats for Nook, Kindle, and iPad.

I hope this helps you deal with winning the lottery or receiving an inheritance. Remember, it took your loved one many years to accumulate the wealth and share it with you. Don’t waste the money in 18 months. Honor the person that spent their life accumulating a bit of extra cash and thought enough of you to let you have it when they didn’t need it. It was a gift for you, so say “Thank you!” and use it suitably.

Photo by Montage Communications