In an article that I wrote for Moneynews on May 3, I advised my readers to sell all of their stock holdings and to use the time between a likely ensuing downturn in stocks and the beginning of a new bull market to create a watch list of future investment candidates.

Since then, I’ve written several articles on companies that I’ve added to my own watch list or have recently bought, including Ctrip.com (CTRP), Renren Inc. (RENN), Jiayuan.com (DATE), and OmniVision Technologies (OVTI).

Each of those stocks bottomed and then moved considerably higher during the past few weeks, with DATE appreciating 41 percent and RENN advancing a whopping 71 percent since bottoming on June 20 and June 24, respectively.

Several other stocks on which I recently wrote articles, and that I urged investors to add to their watch lists, also bottomed and turned substantially higher during the past few weeks, including Cyberonics (CYBX), Volcano (VOLC), and Accuray (ARAY), which have appreciated 19 percent, 27 percent, and 28 percent, respectively, since late June through yesterday’s close.

Make 12.3% Without Touching Stocks, Bonds, or CDs . . . The recent performance of those companies clearly demonstrates the reason that investors should establish a watch list of stocks and then closely monitor those stocks, even during stock market downturns: Some companies, and their stocks, tend to perform well even during weak economic environments and during stock market pullbacks.

For that reason, I generally advise investors to ignore the type of distracting “noise” that recently created by the media’s focus on the Rupert Murdoch scandal and the debate in Congress regarding the U.S. government debt ceiling and instead to use their time to research and analyze the companies on their watch lists.

During the weeks and months ahead I’ll continue to provide my readers with key information on the stocks that I’m considering for inclusion in my own portfolio and for the advisory services that I write for Newsmax.

In addition, during the next few days I plan to write about a few recent IPOs that appear to be poised for some big gains over the next 12 months.

About the Author: David Frazier
David Frazier is a member of the Moneynews Financial Brain Trust. Click Here to read more of his articles. He also writes two very successful investment newsletters. Discover more by Clicking Here Now.