There are also scores of newsletters that offer
stock recommendations and advice based on a single analyst's opinion
or methodology. Sometimes these newsletters also offer general
investment advice and broader assessments of economic trends.
Many of them track their performance by reporting on the ups and
downs of a model portfolio invested in the stocks they recommend.
Many newsletter subscriptions market themselves
by offering a sample edition or inviting you to sign up for a
free trial, so you can review their format and the general scope
of their advice. It's a good idea to sample before you buy
because newsletters vary widely in their quality and approach.
For example, you may find that some newsletters focus on stocks
that are too risky for your portfolio, while others may be too
conservative for your taste. And you might find some stock-selection
methods suit you better than others. It's also a good idea to
seek details about the newsletter's track record.
What's it worth?
Subscription newsletters can be expensive, with
annual fees ranging from about $100 to $600. But if a subscription
newsletter gives you solid analysis, excellent stock advice, and
practical ideas you wouldn't have found otherwise, you may find
that the cost is worth it.
Sam Stovall,
Chief Investment Strategist at Standard & Poor’s