Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
CoronaVirus Pandemic Day 76 Trend Forecast Update - Infected 540k, Minus China 1715, Deaths 4920 - 23rd Feb 20 -
Ways to Find Startup Capital - 23rd Feb 20
Stock Market Deviation from Overall Outlook for 2020 - 22nd Feb 20
The Shanghai Composite and Coronavirus: A Revealing Perspective - 22nd Feb 20
Baltic Dry, Copper, Oil, Tech and China Continue Call for Stock Market Crash Soon - 22nd Feb 20
Gold Warning – This is Not a Buying Opportunity - 22nd Feb 20
Is The Technology Sector FANG Stocks Setting Up For A Market Crash? - 22nd Feb 20
Coronavirus China Infection Statistics Analysis, Probability Forecasts 1/2 Million Infected - 21st Feb 20
Is Crude Oil Firmly on the Upswing Now? - 20th Feb 20
What Can Stop the Stocks Bull – Or At Least, Make It Pause? - 20th Feb 20
Trump and Economic News That Drive Gold, Not Just Coronavirus - 20th Feb 20
Coronavirus COVID19 UK Infection Prevention, Boosting Immune Systems, Birmingham, Sheffield - 20th Feb 20
Silver’s Valuable Insights Into the Upcoming PMs Rally - 20th Feb 20
Coronavirus Coming Storm Act Now to Protect Yourselves and Family to Survive COVID-19 Pandemic - 19th Feb 20
Future Silver Prices Will Shock People, and They’ll Kick Themselves for Not Buying Under $20… - 19th Feb 20
What Alexis Kennedy Learned from Launching Cultist Simulator - 19th Feb 20
Stock Market Potential Short-term top - 18th Feb 20
Coronavirus Fourth Turning - No One Gets Out Of Here Alive! - 18th Feb 20
The Stocks Hit Worst From the Coronavirus - 18th Feb 20
Tips on Pest Control: How to Prevent Pests and Rodents - 18th Feb 20
Buying a Custom Built Gaming PC From Overclockers.co.uk - 1. Delivery and Unboxing - 17th Feb 20
BAIDU (BIDU) Illustrates Why You Should NOT Invest in Chinese Stocks - 17th Feb 20
Financial Markets News Report: February 17, 2020 - February 21, 2020 - 17th Feb 20
NVIDIA (NVDA) GPU King For AI Mega-trend Tech Stocks Investing 2020 - 17th Feb 20
Stock Market Bubble - No One Gets Out Of Here Alive! - 17th Feb 20
British Pound GBP Trend Forecast 2020 - 16th Feb 20
SAMSUNG AI Mega-trend Tech Stocks Investing 2020 - 16th Feb 20
Ignore the Polls, the Markets Have Already Told You Who Wins in 2020 - 16th Feb 20
UK Coronavirus COVID-19 Pandemic WARNING! Sheffield, Manchester, Birmingham Outbreaks Probable - 16th Feb 20
iShares Nasdaq Biotechnology ETF IBB AI Mega-trend Tech Stocks Investing 2020 - 15th Feb 20
Gold Stocks Still Stalled - 15th Feb 20
Is The Technology Stocks Sector Setting Up For A Crash? - 15th Feb 20
UK Calm Before Corona Virus Storm - Infections Forecast into End March 2020 - 15th Feb 20
The Growing Weaponization of Space - 14th Feb 20
Will the 2020s Be Good or Bad for the Gold Market? - 14th Feb 20
Predictive Modeling Suggests Gold Price Will Break Above $1650 Within 15~30 Days - 14th Feb 20
UK Coronavirus COVID-19 Infections and Deaths Trend Forecast 2020 - 14th Feb 20
Coronavirus, Powell and Gold - 14th Feb 20
How the Corona Virus is Affecting Global Stock Markets - 14th Feb 20
British Pound GBP Trend and Elliott Wave Analysis - 13th Feb 20
Owning and Driving a Land Rover Discovery Sport in 2020 - 2 YEAR Review - 13th Feb 20
Shipping Rates Plunge, Commodities and Stocks May Follow - 13th Feb 20
Powell says Fed will aggressively use QE to fight next recession - 13th Feb 20
PALLADIUM - THIS Is What a Run on the Bank for Precious Metals Looks Like… - 13th Feb 20
Bitcoin: "Is it too late to get in?" Get Answers Now - 13th Feb 20
China Coronavirus Infections Soar by 1/3rd to 60,000, Deaths Jump to 1,367 - 13th Feb 20
Crude Oil Price Action – Like a Coiled Spring Already? - 13th Feb 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

How to Make Money No Matter What the Stock Market Does

InvestorEducation / Learning to Invest Oct 31, 2012 - 08:00 AM GMT

By: Investment_U

InvestorEducation

Best Financial Markets Analysis ArticleMarc Lichtenfeld writes: This weekend, I was at a boxing match, talking with someone affiliated with the show. He used to work on Wall Street. I asked him if he missed it. “Hell, no,” he said quickly. “Wall Street makes boxing look like an honest business.”

After the financial collapse, flash crash and various scandals, that’s the way many people view Wall Street.

And that’s despite the current bull market being the ninth longest in history – out of 26.


From its lowest point to its peak, this bull market was up 121%. After the recent sell-off, we’re currently up 118%. That makes the current market the seventh-strongest market in terms of gains.

In an excellent Wall Street Daily article, my colleague Louis Basenese points out that of the eight longer bulls, the second half of the bull market equaled or topped the performance of the first half in five of them.

Yet, according to AAII’s Investor Sentiment Survey, only 29.2% of investors are bullish while 43.1% are bearish. The long-term average is 39% bullish and 30% bearish.

So despite being in one of the top 10 strongest markets in history, investors aren’t buying it (figuratively and literally). In fact, the average investor’s timing has been nothing short of abysmal.

Investors have taken money out of equity mutual funds for 17 consecutive months. In September, the industry saw nearly $14-billion worth of funds redeemed, despite the market making new bull market highs in six of those 17 months.

Just like I advocate betting against Wall Street’s sell-side analysts, I also recommend fading (betting against) the general public. As long as there is so much fear out there, the market should go higher…

Fear of the Unknown
I understand the fear – there’s a lot to be fearful about. We’re either about to elect a President who’s a Kenyan Marxist Terrorist who hates America or a Flip-Flopping, Woman-Hating, Silver Spoon Born “One-Percenter,” who’s the puppet of billionaire businessmen.

Then, of course, there’s Europe (which will surely collapse), impossibly low interest rates that will soon make the Zimbabwean dollar look stable compared to the greenback and a nuclear-armed Iran whose leaders can’t wait to let the missiles fly so they can be in the loving arms of 72 brown-eyed virgins.

The problems are real. And there will be new ones rearing their ugly heads soon.

But the world has always had problems. Ten years ago, we were in the midst of the worst bear market in history, one that saw the stock market get cut in half. There was fear that the economy was slowing. (Isn’t there always?) We were still licking our wounds from 9/11 and getting ready to invade Iraq in a war that was as unpopular as Vietnam.

Despite those serious issues, the market is up 59.4% during those years – which also included another nasty bear market and a near financial meltdown. Not bad considering.

How to Play it Safely
If you’re concerned about the market, but also see the intelligence of going against the crowd, consider Perpetual Dividend Raisers – stocks that raise their dividends every year.

Now, many “experts” will tell you these stocks are overvalued, because they’ve been hot for a while. But if you’re investing for the long term, Perpetual Dividend Raisers typically go up more in bull markets and go down less in bear markets than the broader indices.

For example, since the 10-year period ending in 2002 – not including dividends, just share price appreciation – the market has risen an average of 71% over 10 years (1993-2002, 1994-2003, etc.). That comes out to an average annual growth rate of 5.5%.

Dividend Aristocrats, stocks that have raised their dividends every year for 25 years, climbed 103% or 7.29% annually.

When you include dividends, the market returned an average of 96% over 10 years or an average of 6.98% annually versus the Aristocrats return of 162%, or 10.11%.

That 10.11% figure incorporates at least one bear market and in many cases two, in each variable in the calculation. I’m sure most investors would be satisfied with earning an average of double digits annually on their long-term money especially after weathering a vicious bear market or two.

A 10.11% compound annual growth rate doubles your money in just over seven years. It triples your investment in just over 11 years.

Avoid Trying to Time the Market
The point is, don’t try to time the market. There are problems in the world. There are crooks on Wall Street, but that shouldn’t stop you from investing to reach your goals. Just like you don’t let the fact that you could get hit by a bus crossing the street stop you from going about your daily activities.

If you’re invested for the long term (especially if you’re invested in Perpetual Dividend Raisers) and don’t give your money to suspicious characters to manage for you, you’ll be fine.

When the general public is afraid of Wall Street, that’s the time to be invested. You’ll be selling your shares to them at higher prices when they come back in droves.

Source : http://www.investmentu.com/2012/October/make-money-no-matter-what-the-market-does.html

Marc Lichtenfeld

Editor’s Note: But what if you don’t have the time to put together a stock watchlist for yourself, or don’t even know where to look? That’s where The Oxford Club comes in. We’ll do the work for you, showing you what stocks to buy and when to buy them. Not only that, the Club offers something for every investor – from stock market newcomers to seasoned veterans – and provides ample opportunity to diversify through several model portfolios. Take a look at the full list of benefits that you’ll receive when you become a member of The Oxford Club.

Copyright © 1999 - 2008 by The Oxford Club, L.L.C All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Investment U, Attn: Member Services , 105 West Monument Street, Baltimore, MD 21201 Email: CustomerService@InvestmentU.com

Disclaimer: Investment U Disclaimer: Nothing published by Investment U should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Investment U should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Investment U Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules