03 Oct Investment Newsletters – Are They Worth?
While investment newsletters have been in existence for years, many questions about their usefulness have always lingered. Here, we will examine different investment newsletter types, their availability, and pricing structures to help you determine whether it’s worth to use newsletters to boost your returns on investment.
Classification of Newsletters
Specialty newsletters focus on real estate, natural resources, and other fields of high specialization. They cover everything else other than stock market investments. Written by highly specialized experts, these newsletters add value to their readers through analysis.
Some types of specialty newsletters include:
- Cryptocurrency newsletters
- Blockchain investing newsletters
- Oil & gas investing newsletters
- Gold newsletter
- Disaster strategy newsletters
- Foreign exchange (forex) investing newsletters
- Emerging markets for specialized commodities newsletters
- Geopolitical investing newsletters
Stock Recommendation newsletters
A number of newsletters offer individual stock recommendations on the basis of some valuation methodology. This category of newsletters assesses penny stocks or small-cap stocks since such securities tend to be ignored by analysts on Wall Street.
Market Trading Strategy Newsletters
These are investment newsletters that highlight the best trading strategies based on economic times and the overall stock market performance. Most of these are capable of exceptionally analyzing undervalued stocks and sharing information to the public. As an investor though, you might need to ask yourself why an analyst is sharing such valuable information more so when it is easier to use such strategies to make money for him/herself on stock investments. It is, however, important to know that while not all, most of these publishers are expert stock traders who practically execute what they share.
One drawback to trading newsletters is timelessness, as recommendations could soon get out of date.
Overall Economic or Market Commentary
This is a broad category of newsletters whose emphasis is on the overall market and economic trends. The quality of these newsletters is based on an analyst’s ability to understand the field. You thus should consider the reputation of such newsletter makers and their experience in the field before subscribing to any.
What are the alternatives to newsletters?
As an investor, you are likely to feel that newsletters are not for you. In such a case, you can get investment data from platforms like:
- Investment blog articles
- Wall Street report sheets
- Brokerage firms reports
- Analyst research reports
- Social media
The drawback to taking such an approach though is that as an average investor, you might not have full access to wall street research. Navigating through the internet and finding reliable information might also be time-consuming and at the end of it all, you might not get timely and reliable investment data.
Paid investment newsletters on the other hand gather information from all necessary platforms and share with their subscribers. Having a subscription to a reputable newsletter in your field of interest can thus save you a tone of inconveniences.
Cost and Availability Considerations
Cash spent on newsletter investments will not reflect directly on your portfolio. You thus rather not spend much of this on a subscription that does not help you manage your investment. Avoid making first time long-term subscriptions, as this will help you opt out once you realize that the newsletter is no longer of value to you.
A good newsletter is one that is available when needed. For example, a market-timing newsletter will need to be published frequently so that it can be of value to you as an investor. On the contrary, newsletters that examine broader currents of the economy might not require a frequent publication.
With the many types of investment newsletters, you should decide on the one that suits your nature of investment best. Put it in mind that not all newsletters have reliable information, and that is the reason why you ought to be skeptical when choosing one. A newsletter with a long-term reputation is an ideal option. The subscription cost should be reasonable, and try not to entirely depend on one source of information for your investment decisions.