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The Great Stock Market Secret

When the stock market is going up and all your stocks and mutual funds are making money you feel like a genius. It is too bad that some folks don’t remember what happened in 2000. Of course, right now we are in one of those genius phases.

Getting Even

I know there are a lot of you out there who would like to “get even” with the stock market. Many are on the diet of “I hope, I hope”. As a professional trader I can tell you that diet will make you very sick.

Hedge Funds

You read and hear a lot about hedge funds. Unfortunately, most of what you hear is negative because it comes from the major media that has an interest in reporting negatives about them because the major media is supported by so-called standard mutual funds and brokerage companies that spend big bucks for advertising. Hedge funds are NOT allowed to advertise.

The Golden Goose is Sick

It is finally catching up with them. The brokerage companies I mean. For years they have been feeding bad food to their flock and now the flock is rebelling. The customer has been low man on the totem pole for too long. That food has been the disinformation that has caused customers to lose large sums of money.

Diversification

Wall Street’s watchword has always been diversification, but what does it mean and why do they say it?

Investment Research – The Dalbar Study

Very few people, even professionals, have heard of the Dalbar Study that originated in 1995. Its purpose is to determine the profitability of trading for the small investor of mutual funds. Their results are even worse than I thought.

Don’t Fight The Fed

One of the great truisms of Wall Street is “Don’t fight the Fed”. For the long term investors this has resulted in greater profits. When the Federal Reserve Board hikes interest rates look out and when the do it 3 times in a row it is called “3 jumps and a stumble”. We have just gone through the stumble and it has been costly.

Does Japan Matter?

For the last 12 years we have seen the Japanese stock market slowly sinking from a high of 38,000 to about 8,000, more than a 75% loss and very close to the price of the Dow Jones Industrial Average. Why should we care about their stock market?

Investment Discipline

One of the great “secrets” of successful people is discipline and it doesn’t make any difference whether it is manufacturing, processing, servicing or investing in the stock market.

Duct Tape

Did you run out to buy that duct tape yet? Don’t forget the plastic sheeting, bottles of water, canned food and a couple of books to read. What are you waiting for? I know – things to get better so you can resume your normal life style.