No hype or hidden agendas, just solid research and trading ideas for the self-directed investor.
Gain a better understanding of what is moving the financial markets and the insight to profit from it.
True Market Insight and Actionable Intelligence
John Derrick, CFA
Hello, my name is John Derrick and I started The Derrick Letter investment newsletter service because this is what I love to do. I have over 18 years’ experience as an institutional portfolio manager. Over my investing career, I have managed a wide variety of assets, ranging from money market funds to emerging market equities and lots of things in between. I was very fortunate to have a wide range of experiences and that has shaped my thinking about the global financial markets and specifically how to invest and profit in a wide range of circumstances.
My passion is the U.S. equity market and my style of investing has bits of a classic growth strategy combined with momentum and relative strength, at its core it is an intermediate term trading strategy. The key for me is identifying inflection points in the market that provide relatively low risk entry and exit points, which I will expand on a little later.
I also believe I possess a superior skill at identifying capital market assumptions and use that to my advantage. I believe you will find The Derrick Letter to be a very differentiated investment idea generation tool that you are not going to find in traditional investment channels.
The Derrick Letter is your “cheat sheet” on the market. With concise weekly updates to keep subscribers abreast of what is important and what is just noise. I believe you will gain a greater understanding of the U.S. equity market and how to profit from it. There won’t be a lot of fluff, my writing style is quick and to the point and only enough background to understand my thought process. There is also no hype or hidden agendas, just solid research and trading ideas for the self-directed investor.
A top down view of the world is important and a key part of my investment process is to understand why markets are behaving a certain way. Identifying and understanding the market regime is very important for the successful trader and the need to have an opinion on the near-term market direction is a key part of the strategy.
Identifying themes and cycles is also an important component of the strategy, examples include the tech bubble, housing cycle, China, commodities and the recent sector rotation post the election results.
How to Use this Newsletter
Market timing is largely regarded as a losing long-term strategy but this system is not an all-in/all-out market timing model but about identifying low risk entry points, taking profits when prudent and preserving capital when you are wrong.
The reason I have set up the newsletter this way is based on my own experience with “buy” rated stocks or “focus” lists, etc. For example, an analyst will recommend a stock for purchase at $20, the stock has run up to $24 and the analyst still has a buy on it or it remains on the focus list. The value in the recommendation was when it was made, not two months later when the stock has already moved, even though it still remains a buy or focus list stock.
The Silver Level Subscription is for the general market investor, understanding the market regime (bull or bear) is key. Participating in the market when an uptrend is in place is critical to successful trading. I have known people who were traumatized by the global financial crisis, got out of the market and then never got back in. On the other hand, if the market is breaking down and flashing warning signs and sell signals, you need to move to cash or buy an inverse ETF to protect capital or profit even in a down market. This newsletter will help you identify the current market regime along with the nuance of what is working and what is not, this allows you to hone in on the strongest parts of the market.
The Gold Level Subscription is for the active trader and my goal is to provide you with timely, actionable trading ideas. The technical set-up is very important to me when buying or selling individual stocks. Not every stock idea will work and trading discipline is key to success. Profits should normally be taken after a 20-25% gain and losses should be kept to 5-10%, but it will be up to the individual subscriber to make those decisions.
Transparency and Conflicts:
I intend to manage The Derrick Letter with the utmost level of transparency and integrity. Nothing is more important than my reputation. Many investment newsletters prohibit their writers from investing in the stocks they recommend, with the thinking that this somehow clouds their judgement or that they will put their interests ahead of subscribers.
I will be personally investing in the stock ideas I discuss in this newsletter. I believe that aligns our interests instead of being a conflict. The stocks I am typically investing in or discussing tend to be the largest 1000 stocks in the market, with sufficient trading liquidity that our collective actions will have minimal impact. It is likely that I have already initiated a position in some of the stocks that are on the watch lists.
The Derrick Letter currently offers two subscription tiers.
Risk Free One Month Trial!
The silver level subscription entitles you to a weekly general market analysis and a market level ETF strategy. You will receive my weekly market commentary that will recap key market moves and the drivers behind them. This is effectively a “cheat sheet” on the market. It will be concise and to the point but give you the information you need to gain a better understanding of the market and is primarily attempting to help you participate in the major market trends.
This subscription is suitable for just about anyone interested in the financial markets.
The Gold level subscription entitles you to the general market analysis (Silver Subscription) in addition to a weekly stock watch list which will include both long and short trade ideas.
As I survey the market every week and build stock watch lists for myself, I share those with my gold level subscribers. Just like my market commentary, this list will be relatively concise, allowing you to hone in on potentially profitable trading ideas quickly.
The watch list will change regularly and is not a portfolio that I am actively tracking. It is a weekly idea list with timely trading ideas when published and is up to the individual subscriber to decide what is interesting and act on those names. The number of watch list stocks will vary from week to week depending on the market conditions.