Best of the Week
Most Popular
1.US Paving the Way for Massive First Strike on North Korea Nuclear and Missile Infrastructure - Nadeem_Walayat
2.Trump Reset: US War With China, North Korea Nuclear Flashpoint - Video - Nadeem_Walayat
3.Silver Junior Mining Stocks 2017 Q2 Fundamentals - Zeal_LLC
4.Soaring Inflation Plunges UK Economy Into Stagflation, Triggers Government Pay Cap Panic! - Nadeem_Walayat
5.The Bitcoin Blueprint To Your Financial Freedom - Sean Keyes
6.North Korea 'Begging for War', 'Enough is Enough', is a US Nuclear Strike Imminent? - Nadeem_Walayat
7.Bitcoin Hits All-Time High and Smashes Through $5,000 As Gold Shows Continued Strength - Jeff_Berwick
8.2017 is NOT "Just Another Year" for the Stock Market: Here's Why - EWI
9.Gold : The Anatomy of the Bottoming Process - Rambus_Chartology
10.Bitcoin Falls 20% as Mobius and Chinese Regulators Warn - GoldCore
Last 7 days
Stocks, Gold, Dollar, Bitcoin Markets Analysis - 23rd Sep 17
How Will We Be Affected by a Series of Rate Hikes? - 23rd Sep 17
Fed Quantitative Tightening Impact on Stocks and Gold - 22nd Sep 17
Bitcoin & Blockchain: All Hype or Part of a Financial Revolution? - 22nd Sep 17
Pensions and Debt Time Bomb In UK: £1 Trillion Crisis Looms - 22nd Sep 17
Will North Korea Boost Gold Prices? Part I - 22nd Sep 17
USDJPY Leads the way for a Resurgent Greenback - 22nd Sep 17
Day Trading Guide for Dummies - 22nd Sep 17
Short-Term Uncertainty, As Stocks Fluctuate Along Record Highs - 21st Sep 17
4 Reasons Gold is Starting to Look Attractive as Cryptocurrencies Falter - 21st Sep 17
Should Liners Invest in Shipping Software Solutions and Benefits of Using Packaged Shipping Software - 21st Sep 17
The 5 Biggest Bubbles In Markets Today - 20th Sep 17
Infographic: The Everything Bubble Is Ready to Pop - 20th Sep 17
Americans Don’t Grasp The Magnitude Of The Looming Pension Tsunami That May Hit Us Within 10 Years - 20th Sep 17
Stock Market Waiting Game... - 20th Sep 17
Precious Metals Sector is on Major Buy Signal - 20th Sep 17
US Equities Destined For Negative Returns In The Next 7 Years - 3 Assets To Invest In Instead - 20th Sep 17
Looking For the Next Big Stock? Look at Design - 20th Sep 17
Self Employed? Understanding Business Insurance - 19th Sep 17
Stock Market Bubble Fortunes - 19th Sep 17
USD/CHF – Verification of Breakout or Further Declines? - 19th Sep 17
Blockchain Tech: Don't Say You Didn't Know - 19th Sep 17
The Fed’s 2% Inflation Target Is Pointless - 19th Sep 17
How To Resolve the Korean Conundrum  - 19th Sep 17
A World Doomed to a Never Ending War - 19th Sep 17
What is Backtesting? And Why You Need Backtesting System? - 19th Sep 17
These Two Articles Debunk The Biggest Financial Nonsense I See In The Media - 18th Sep 17
Bitcoin Price Crash 40% In 3 Days Underlining Gold’s Safe Haven Credentials - 18th Sep 17
The Sum of Risks – Global, Strategic, Political, and Financial - 18th Sep 17
The Netflix Of Canada’s Cannabis Boom - 18th Sep 17
Stock Market Sentiment Speaks: Either You Learn From The Events Of The Past Week, Or You Are Hopeless - 18th Sep 17
SPX 2500 … At Last! - 18th Sep 17
Inflation Lies, Lies and OMG More Lies - 18th Sep 17
How to Choose right Forex Trader? - 18th Sep 17
Who Has Shaped the World the Most? The Dozen Greatest Achievers - 17th Sep 17
Riding the ‘Slide’: Is This What the Next Stocks Bear Market Looks Like? - 17th Sep 17
Gold Up, Markets Fatigued As War Talk Boils Over - 17th Sep 17
Predicting the Future of the U.S. and the World - 16th Sep 17
Deceit in the Financial Food Chain - 16th Sep 17
Gold GLD ETF Investment Resuming - 16th Sep 17
Extreme Weather & Energy Markets: What's Next? - Video - 15th Sep 17
Trump’s Path to IP Wars - 15th Sep 17
GBP USD Approaches Fibonacci Target - 15th Sep 17
Higher US Interest Rates May Force Higher Inflation Rates - 15th Sep 17
Stock Market Investors: Taking the Road "Less Traveled" Has Its Perks - 15th Sep 17
The 3 Best P2P Lending Platforms For Investors In 2017—Detailed Analysis - 15th Sep 17
The US Debt Bubble Will Soon Warrant Serious Measures - 15th Sep 17
Why it is Often Difficult to Sell a House Fast - 15th Sep 17

Market Oracle FREE Newsletter

3 Videos + 8 Charts = Opportunities You Need to See - Free

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

© 2005-2017 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