Best of the Week
Most Popular
1.Crude Oil Price Trend Forecast 2016 Implications for Stock Market - Nadeem_Walayat
2.Odds of Winning Walkers Crisps Spell & Go olidays K, C and D Letters - Sami_Walayat
3.Massive Silver Price Rally During The Coming US Dollar Collapse - Hubert_Moolman
4.Pope Francis Calls For Worldwide Communist Government - Jeff_Berwick
5.EU Referendum Opinion Polls Neck and Neck Despite Operation Fear, Support BrExit Campaign - Nadeem_Walayat
6.David Morgan: There Will Soon Be a Run to Gold Like You've Never Seen Before - Mike Gleason
7.British Pound Soars on BrExit Hopes Despite Remain Establishment Fear Mongering - Nadeem_Walayat
8.Gold Price Possible $200 Rally - Bob_Loukas
9.The Federal Reserve is Not Going To Raise Interest Rates and Destroy Gold - Michael_Swanson
10.Silver Miners’ Q1’ 2016 Fundamentals - Zeal_LLC
Free Silver
Last 7 days
U.S. Household Debt Still Below 2008 Peak - 25th May 16
Brexit: Wrong Discussion, Wrong People, Wrong Arguments - 25th May 16
SPX is at Strong Resistance - 25th May 16
US Dollar, Back From the Grave? - 25th May 16
Gold : Just the Facts Ma’am - 25th May 16
The Worst Urban Crisis in History Could be Upon Us - 24th May 16
Death Crosses Across The Board Are IRREFUTABLE Stock Market Sell Signals - 24th May 16
Bitcoin Trading Alert: Bitcoin Price Stays below $450 - 24th May 16
Stock Market Crash Death Cross Doom Prevails - 23rd May 16
Did AMAT Chirp? Implications for the Economy and Gold - 23rd May 16
Stocks Extended Their Rebound On Friday - Will They Continue Higher? - 23rd May 16
UK Treasury Propaganda Warns of 3.6% Brexit Recession, the £64 Billion Question? - 23rd May 16
Stock Market Support Breached, But Not Broken! - 23rd May 16
George Osborne Warns of 18% Cheaper House Prices - BrExit for First Time Buyers - 22nd May 16
Gold Bull-Phase I Continues to Confound (The Trek to “Known Values”) - 22nd May 16 r
Avoiding a War in Space - 22nd May 16
Will Venezuela Be Forced to Embrace the US Dollar? - 21st May 16
Danish Central Bank Stumbles with Its Currency Peg to the Euro - 21st May 16
SPX Downtrend Underway - 21st May 16
George Osborne Warns of More Affordable UK Housing Market if BrExit Happens - 21st May 16
Gold And Silver 11th Hour: Globalists 10 v People 0 - 21st May 16
David Morgan: There Will Soon Be a Run to Gold Like You've Never Seen Before - 21st May 16
Gold Stocks Following Bull Analogs - 20th May 16
The Gold Chart That Has Central Banks Extremely Worried - 20th May 16
Silver Miners’ Q1’ 2016 Fundamentals - 20th May 16
Stock Market Rally At the End of the Road? - 20th May 16
British Pound Soars on BrExit Hopes Despite Remain Establishment Fear Mongering - 20th May 16
NASDAQ 100, FTSE, and British Pound - When Rare Market Data Screams, Listen  - 20th May 16
Unintended Consequences, Part 1: Easy Money = Overcapacity = Deflation - 19th May 16
The Federal Reserve is Not Going To Raise Interest Rates and Destroy Gold - 19th May 16
Stock Market Final Supports Are Broken - 19th May 16
Gold - Pro-Inflation? Anti-USD? - 19th May 16
Further Stock Market Uncertainty As Indexes Gained On Friday, Will Uptrend Resume? - 19th May 16
What This U.S. Presidential Election Tells Us About Her Millennial Generation - 18th May 16
Stock Market Trendline Broken on Fed Announcement - 18th May 16
An Incredibly Simple, Rarely Used Way to Book 170% Investing Gains - 18th May 16
Statistically Significant Stock Market Death Cross? - 18th May 16
Precisely Wrong on US Dollar, Gold? - 18th May 16
What You Can Gain From One Tech CEO's $355 Million Loss - 18th May 16
The ‘Tide’ has turned… NEGATIVE For STOCKS!!! - 18th May 16
Goldman Sachs's - Regulatory Climate is Chilling Deals; Hatzius Not Worried About a Recession - 18th May 16
Bitcoin Price Remains above $450 - 18th May 16
Crude Oil Price Trend Forecast 2016 Implications for Stock Market - 17 May 16
Could the National Debt Really Grow as High as $31 Trillion by 2023? - 17 May 16
Gold Price Possible $200 Rally - 17 May 16
Crisis Investing - Jim Rogers on “Buying Panic” - 17 May 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Why 95% of Traders Fail

Why Dr. Skousen is Still Bullish on Stocks

Companies / Investing 2013 May 01, 2013 - 04:53 PM GMT

By: Investment_U

Companies

Mark Skousen writes: “Bears make headlines, bulls make money.” – Old Wall Street saying

I have on my bookshelf a series of books with opposing titles: The Alpha Strategy and The Omega Strategy; Asia Rising and Asia Falling; Free to Choose and Free to Lose; How to Win Friends and Influence People and How to Lose Friends and Alienate People… Visitors love the collection.


Now I can add the perfect counterpoint to Norman Vincent Peale’s classic The Power of Positive Thinking.

In The Power of Negative Thinking, the author is no longer Bobby” Knight. The infamous college basketball coach now goes by Bob Knight. But I wonder if he has grown up and learned from his mistakes (the theme of his book).

I bought the book hoping he would apologize in print for his out-of-control tirades, violent temper, and ugly expletives that destroyed his marriage and his career as a successful coach.

I had to read the entire book to find out, since it has no index (one of my pet peeves). And no, he never brings up any negative stories about himself, like the throwing of a chair at officials in 1985 or the choking of a player that got him fired from Indiana.

I like a lot of what Knight says about “hollow platitudes” by the eternal optimists, such as “you can do anything you want to do in life,” and athletes who are always praising God when they score a basket.

There’s too much Pollyanna praise heaped on kids these days, and not enough discipline.

Knight emphasized eliminating mistakes and bad habits as the key to success in life. He himself is his own best friend and worst enemy of this principle. Negative Thinking will never be a classic like Peale’s book. Negative books can be best-sellers, but seldom classics. Jim Collins’ book Good to Great is a classic business book, and is still No. 51 on Amazon.com after 12 years… while Collins’ negative book How the Mighty Fall is No. 9,200, even though it came out more recently (2009).

The Investing Mindset

The same principle applies to investing.

At the Investment U conference in March, Investment Director Alex Green spoke on “How to Lose More Money Than You Ever Imagined,” which was the first time the audience wasn’t enamored.

In my experience, investors are more interested in how to make money (greed) than they are in how to avoid losing money (fear). And yet, we learn the most from our mistakes, especially the big ones, as Bob Knight emphasizes.

What’s Warren Buffett’s No. 1 rule? “Never lose money.”

Yet would he be famous today if he only avoided losing money? No, he’s famous because he beat the market over the past 50 years and is now the wealthiest investor in the world.

On Wall Street there are two kinds of investment writers and money managers you should watch out for. First are the permabears. They are always negative about the stock market (and are usually gold bugs). And second are the permabulls (usually stockbrokers because they make more money during bull markets).

Both have their weaknesses.

Permabears miss most of those incredible bull markets (such as the 1990s, or the recovery after the 2008 crash). Permabulls get wrecked by the crashes.

Ideally you could find an investment advisor or broker who times the market, getting you out before the crash and getting in you before the rallies. But as Bernard Baruch was famous for saying, “Buying at the bottom and selling at the top are typically done by liars.”

Right now I’m bullish on the stock market, even after a four-year rally.

Bullish… for Now

It’s artificially fueled by the Federal Reserve’s easy money policy, but that could last for another year or two. I like especially private equity stocks such as Kohlberg Kravis & Roberts (NYSE: KKR) and Apollo Investments (NYSE: APO)… and homebuilder stocks such as DR Horton (NYSE: DHI). All three of these stocks are selling for less than 10 times earnings and look cheap, despite the run-up in prices. Buy on weakness.

Balance in life is the key, as Aristotle taught us.

Nobody likes a naive Pollyanna who is always bullish, but neither do we like to be around people who are constantly complaining and finding fault. I couldn’t live under the same roof of a permabear, or a Bobby Knight. Despite his incredibly successful record as a basketball coach (winning over 900 games and three NCAA championships), he’s too intense and critical for my tastes.

But maybe I’m too negative…

Good investing,

Mark Skousen

P.S. Join me and Alex Green at FreedomFest, or “the greatest libertarian show on Earth,” in Vegas July 10-13, at Caesars Palace, where our theme is “Are We Rome?”

We just confirmed one of Time‘s “100 Most Influential People in the World” and the man who could be the next president of the United States – Sen. Rand Paul. John Stossel will be taping his Fox News show there for the first time. Plus Jim Rogers, Steve Forbes, Art Laffer, Steve Moore, Charles Murray, Nick Gillespie, all the think tanks, and thousands of attendees. Plus the most successful New York hedge fund managers Cliff Asness and Don Smith (his portfolio was up 37% last year).

To see our crazy 2 1/2 minute video preview, go to www.freedomfest.com, or call Tami Holland at 1-866-266-5101. Rates go up July 1… and we will SELL OUT this year, so sign up today.

Source: http://www.investmentu.com/2013/May/dr-skousen-bullish-on-stocks.html

http://www.investmentu.com

Copyright © 1999 - 2011 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

© 2005-2016 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

Catching a Falling Financial Knife