Best of the Week
Most Popular
1.The Brexit War! EU Fearing Collapse Set to Stoke Scottish Independence Proxy War - Nadeem_Walayat
2.London Terror Attack Red Herring, Real Issue is Age of Reason vs Religion - Nadeem_Walayat
3.The BrExit War, Game Theory Strategy for What UK Should Do to Win - Nadeem_Walayat
4.Goldman Sachs Backing A Copper Boom In 2017 - OilPrice_Com
5.Trump to Fire 50 US Cruise Missiles To Erase Syrian Chemical Attack Air Base, China Next? - Nadeem_Walayat
6.US Stock Market Consolidation Time - Rambus_Chartology
7.Stock Market Investors Stupid is as Stupid Goes - James_Quinn
8.Gold in Fed Interest Rate Hike Cycles- Zeal_LLC
9.The BrExit War - Britain Intelligence Super Power Covert War With the EU - Nadeem_Walayat
10.Marc Faber: Euro to Strengthen, Dollar to Weaken, Gold and Emerging Markets to Outperform - MoneyMetals
Last 7 days
3 Reasons Why “Spring Forward, Fall Back” Also Applies To Gold - 25th Apr 17
SPX may be Aiming at the Cycle Top Resistance - 25th Apr 17
Walmart Stock Extending Higher - Elliott Wave Trend Forecast - 25th Apr 17
Google Panics and KILLS YouTube to Appease Mainstream Media and Corporate Advertisers - 25th Apr 17
Gold Price Is 1% Shy of Ripping Higher - 25th Apr 17
Exchange-Traded Funds Make Decisions Easy - 25th Apr 17
Trump Is Among The Institutionally Weakest National Leaders In The World - 25th Apr 17
3 Maps That Explain the Geopolitics of Nuclear Weapons - 25th Apr 17
Risk on Stock Market French Election Euphoria - 24th Apr 17
Fear Campaign Against Americans Continues Nuclear Attack Drills in New York City - 24th Apr 17
Is the Stock Market Bounce Over? - 24th Apr 17
This Could Be One Of the Biggest Winners Of The Electric Car Boom - 24th Apr 17
Le Pen Shifts Political Landscape- The Rise of New French Gaullism  - 24th Apr 17
IMF Says Austerity Is Over - Surplus or Stimulus - 24th Apr 17
EURUSD at a Critical Point in Wave Structure - 23rd Apr 17
Stock Market Grand Super Cycle Overview While SPX Correction Continues - 23rd Apr 17
Robert Prechter Talks About Elliott Waves and His New Book - 23rd Apr 17
Le Pen, Melenchon French Election Stock, Bond and Euro Markets Crash - 22nd Apr 17
Why You Are Not An Investor - 22nd Apr 17
Gold Price Upleg Momentum Building - 22nd Apr 17
Why Now Gold and Silver Precious Metals? - 22nd Apr 17
4 Maps That Signal Central Asia Is at Risk of War - 22nd Apr 17
5 Key Steps For A Comfortable Retirement From Former Wall Street Trader - 22nd Apr 17
Can Marine Le Pen Win? French Presidential Election Forecast 2017 - 21st Apr 17
Why Stock Market Investors May Soon Be In For A Rude Awakening - 21st Apr 17
Median US Household’s Wealth Has Declined by 40% Since 2007 - 21st Apr 17
Silver, Platinum and Palladium as Investments – Research Shows Diversification Benefit - 21st Apr 17
U.S. Stock Market and Gold, Post Tomahawks and MOAB - 21st Apr 17
An In Depth Look at the Precious Metals Complex - 20th Apr 17
The Real Story of China’s Strong First-Quarter Growth - 20th Apr 17
3 Types Of Life-Changing Crisis That Make You Wish You Had Some Gold - 20th Apr 17
The Truth is a Dangerous Thing - 20th Apr 17
2 Choke Points That Threaten Oil Trade Between Persian Gulf And East Asia - 20th Apr 17
Gold’s Next Downside Target Is Around $700… Even if It Breaks Up First - 19th Apr 17
SPX May be Completing its Corrective Pattern - 19th Apr 17
Silver Production Has “Huge Decline” In 2nd Largest Producer Peru - 19th Apr 17
Soothing East Asia's Nerves as Trump's Administration Reaffirms US Power in Asia-Pacific - 19th Apr 17
The Brexit War - Article 50 Triggered, General Election 2017 Called - Let the Games Begin! - 19th Apr 17

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