Best of the Week
Most Popular
1.Putin’s World: Why Russia’s Showdown with the West Will Worsen - John_Mauldin
2. Stocks Bull Market Grinds Bears into Dust, Is Santa Rally Sustainable? - Nadeem_Walayat
3. Gold and Silver 2015 Trend Forecasts, Prices to Go BOOM - Austin_Galt
4.Gold Price Golden Bottom? - Toby_Connor
5.Gold Price and Miners Soar on Huge Volume - P_Radomski_CFA
6.Stock Market and the Jaws of Life or Death? - Rambus_Chartology
7.Gold Price 2015 - EWI
8.Manipulated Stock Market Short Squeezes to Another All Time High - The China Syndrome - Nadeem_Walayat
9.Gold, Silver, Crude and S&P Ending Wedge Patterns - DeviantInvestor
10.Is the Gold And Silver Golden Rule Broken? - Michael_Noonan
Last 5 days
TrueShopping.co.uk Real Customer Experience Review - Online Shopping Lessons - 26th Nov 14
Is There A New Global Consensus About Cheating Investors To Reboot Employment? - 26th Nov 14
EUR/USD – Currency Bulls Don’t Give Up - 26th Nov 14
Swiss Gold Referendum A Golden Opportunity for Switzerland - 25th Nov 14
Silver: What COT Analysis Tells Us - 25th Nov 14
Stock Market Big, Bold and Ugly - 25th Nov 14
U.S. Dollar Near Top? Gold and Silver Trading, Platinum Breakout Invalidation - 25th Nov 14
Buy Fear - Easily Pick Up Profits on Stock Market Dips - 25th Nov 14
The Islamic State Reshapes the Middle East - 25th Nov 14
Gold Price Forecast 2015 - 25th Nov 14
The Swiss Referendum On Gold: What’s Missing From The Debate - 25th Nov 14
Clash of Generations - Why Millennials Still Live at Home; Not Jobs, Student Debt, or Housing - 25th Nov 14
Stock Market Reminiscent of Pompeii - 25th Nov 14
Once Upon A Time There Were Philosopher Kings - 24th Nov 14
The 2014 Crude Oil Price Crash Explained - 24th Nov 14
China Stock Investing - Follow the Money! - 24th Nov 14
122 Tonnes of Gold Secretly Repatriated to Netherlands - 24th Nov 14
What Causes the U.S. Dollar to Move? - 24th Nov 14
Stock Market Indexes New Highs - Will Uptrend Extend Even Further? - 24th Nov 14
All Hail the King U.S. Dollar - Trend Forecast - 24th Nov 14
Where Is China Economy On The Map Exactly? - 24th Nov 14
Most of The World Economies Panic - Is The US Next? - 24th Nov 14
Stock Market Exhaustion Gap? - 24th Nov 14
Gold Golden Gains Come After The Pain - 24th Nov 14
Crude Oil and Stock Market Setting The Stage For The Next Recession - 23rd Nov 14
This Publicly-Owned Bank Is Outperforming Wall Street - 23rd Nov 14
Who’s Ready For $30 Crude Oil Price? - 23rd Nov 14
Strategic, Methodological and Developmental Importance of Knowledge Consumption - 23rd Nov 14
Manipulated Stock Market Short Squeezes to Another All Time High - The China Syndrome - 23rd Nov 14
Gold Price 2015 - 22nd Nov 14
Stock Market Medium Term Top? - 22nd Nov 14
Is the Gold And Silver Golden Rule Broken? - 22nd Nov 14
Malaysia's Subsidy and Budget Deficit Conundrum - 22nd Nov 14
Investors Hated Gold at Precisely the Wrong Time: What About Now? - 22nd Nov 14
Gold and GLD ETF Selloff - 22nd Nov 14
Currency Wars, the Ruble and Keynes - 21st Nov 14
Stock Market Investor Sentiment in The Balance - 21st Nov 14
Two Biotech Stocks Set to Double on One Powerful Catalyst - 21st Nov 14
Swiss Gold Poll Likely Tighter Than Polls Suggest - 21st Nov 14
Gold's Volatility and Other Things to Watch - 21st Nov 14
Australia Stock Market and AUD Dollar Analysis (ASX200 and AUDUSD) - 21st Nov 14
New Algae Research May Have Uncovered an “Energy Forest” Under the Sea - 21st Nov 14
The Cultural and Political Consequences of Fiat Money - 20th Nov 14
United States Social Crisis - No One Told You When to Run, You Missed the Starting Gun! - 20th Nov 14
Euro-Zone Tooth Fairy Economics, Spain Needs to leave the Euro - 20th Nov 14
Ebola Threat Remains a Risk - New Deaths in Nebraska and New York - 20th Nov 14
Stock Market and the Jaws of Life or Death? - 20th Nov 14
Putin’s World: Why Russia’s Showdown with the West Will Worsen - 20th Nov 14
Making Money While The World Burns - 20th Nov 14
Why This "Quiet Zone" Is Now Tech Stocks Biggest Profit Sector - 20th Nov 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Gold Report 2015

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

© 2005-2014 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

Free Report - Financial Markets 2014