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Forget Knockouts-Avoid Mistakes

Tom McManus says investing is like a golf game. Instead of the most 'memorable' swing… it's really about avoiding mistakes. For investors over the past year, this would have been a fantastic strategy. McManus says "investors might well have fared better if they had avoided the big mistakes of participating in the technology and telecom bubble of 1998-99, or the housing bubble of 2004-06".

Monday on Closing Bell, the Wells Fargo Advisors CIO talked to Bartiromo about characteristics investors should be looking for when buying shares of a company. McManus told her "it' s important for investors to look at companies that will grow their dividends".

The Crisis: 1 Year Later - A CNBC Special Report - See Complete Coverage
The Crisis: 1 Year Later - A CNBC Special Report - See Complete Coverage

Why? McManus says it’s a basic indicator of underlying growth. And growth is KEY. For the US equity market, McManus believes it ' s essential. If you look at his report card on the U.S. equity market you will know why. He has given the macro-economy a 'C-', asset valuation a 'B-', market liquidity a 'C+' and investor sentiment a 'B-'.

So , is the U.S. making the grade? Not quite yet according to Tom McManus…but to me, it's off to a good start.

The Closing Bell's week-long strategy session continues with a line-up you don't want to miss:

Barton Biggs, Byron Wien, David Darst
CNBC.com
Barton Biggs, Byron Wien, David Darst

Tuesday: Traxis Partner's Barton Biggs

Thursday: Blackstone's Byron Wien

Friday: Morgan Stanley's David Darst

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Questions? Comments? Write toinvestoragenda@cnbc.com

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