Investor Spotlight

Sunday, June 30, 2019

Don't Listen to the GURUS on Media

"What we learn from history is that people don't learn from history"

Mr. Warren Buffett

It was the summer of 2016 and I had just come back from the 2 week cruise in the Mediterranean. I mistakenly turned on the news on tv. Brexit was all that they were talking about and every well known hedge fund managers were spouting their opinions on CNBC or CNN or Yahoo finance. One would have thought that the stock market was capitulating.

Non Sense !

One lesson that I have learnt is that my opinion or politics really doesn't matter in the market. Market tends to fool the majority and that includes the professional money managers and hedge fund managers. Market is a collective of all the buyers and sellers. Stock charts will reflect the price and the volume of shares changing hands every day in the market. Ultimately, that is what really matters.

On July 5th 2016, IBD (Investors Business Daily) changed the market pulse to "Market in Confirmed Uptrend". It was a "Follow Thru" day. It was time to start dipping your toes in the market at that time. Best thing to do at that time was not to pay attention to what the so called GURUS were spouting in the media. When I looked outside the window, I noticed the sky wasn't falling. Most retail traders were just too scared to step back in the market. We have been hearing in the media since summer of 2016 that this bull market has been in an uptrend for too long and that it cannot be sustained.

Non Sense !

Since the end of June 2016 to June of 2019, here are the results of the 3 major indexes that I follow. They all show a strong correlations with each other. That to me is the one of the best ways to gauge the performance of the market.

$SPY ... + 41.78% (General market performance).
$DJI ... + 50.33% (Big cap 30 Dow component).
$QQQ ... + 77.41% (Growth stock performance)

At this rate, one could have doubled their portfolio by being a passive investor of the $QQQ within the last 3 years. Learning to read the stock and index charts is what it takes to profit in the stock market.

Mentoring Program

We have very limited number of slots available for the months of August and September in my Mentoring Program. Historically our best quarters are the 4th quarter and the 1st quarter. $QQQ (Growth Stock Index) has performed +21.06% year to date. It's quite possible that we could do just as well in the next 6 months. History suggests that the second half of the year tends to perform better than the first half of the year. It's not a guarantee however. Now is an ideal time to learn to trade and invest utilizing Growth Stock Strategies of IBD (Investors Business Daily).

Schedule a FREE 30 minutes of "Discovery Call" with us and investigate how our program can help you learn the basics of reading Stock Charts. Students that embarked on our program in 2016 have learnt to double their portfolios in the last 3 years.

What are you waiting for?

Do not procrastinate !