Where to Invest Money

Dec 9th, 2010No Comments

It used to be a popular party question whenever anyone knew someone was in the market: “Tell me where to invest money these days?” It was an ice-breaker. Few really wanted to know your favorites unless you were Warren Buffett. They were far more interested in showing off how clever they were.

The numbers of people who boast how clever they are today have dwindled and are largely those who cashed in with handsome profits in the summer of 2007. Mention the market at a party today and after the sudden hush that descends on the room spouses remind us we need to get home so the babysitter can leave or because tee-off time is early tomorrow.

A persistent questioner may ask: “Well, what are some things to invest in?” Or: “Do you believe in timing the market and is this the right time?” Again, you are not expected to come up with an answer better than the questioner’s own, which leaves an opening for him to burden you with his own indisputable logic. (At which point you reinforce your spouse’s reminder of an early tee-off time!)

No crystal ball

The truth is both that there is no way to foretell the future and that the best time is now unless you have a disciplined system. There is undeniable logic to both answers; they are not necessarily opposites. But neither of those answers is particularly helpful to the serious questioner.

The truth is that markets rise and market fall. Anyone who watches the news quickly learns this. But most news people are interested in headlines that grab eyeballs; few know much about stocks or markets. “The Market Suffered a Triple-Digit Decline,” gets attention; “The Market was Flat” is even less interesting than: “Dog Bites Man.”

It is often said that timing the market does not work. There could be a number of reasons for this belief by some: Many are unsuccessful with it because they lack a system. The vast number of individual market timers get in way too late and out at the worst possible time; If you don’t have a system, brokers and mutual funds have greater opportunities to earn money from you at any time. Ignorance is not bliss! You are an ATM for professionals.

Timing markets not difficult

Markets can be timed, as this website proves over the past 40-or-so years. Can they be timed accurately so you buy at the very bottom and sell and the last instant prices are rising? No, they cannot! But the Wealthy Investor Weekly’s system proves, warts and all, excellent profits can be made even with approximate timing.

Our system is built on averages, and averages sometimes work perfectly and occasionally are wrong…but they tend toward the winning side of the ledger. The good news is that the system has some safeguards built in that more often than not allow for solid profits. See the charts in the book and you will see exactly what we mean.

It is important you examine not only past results but how you will feel under certain conditions, especially if some of your investment appears to have gone up in smoke. This is when amateur investors often pack it in to save what little they have left of their capital. Our advice: with a diversified portfolio making up for some temporary losses, wait the tough times out. The numbers suggest it is unlikely you will regret it.

Look at charted histories

Look at the histories shown in the charts and you will see that in the majority of cases stocks bought at less that optimum times typically come back to increase the overall value of your portfolio. (Recent program improvements have cut out what I used to call “dumb” trades and have vastly improved results. Long-term results appear weekly on our secure service.)

That does not mean there are no losses. There are, but extremely few! Then look at the average loss per share and compare that with the average profit per share for winning investments. Not only are the winners considerably more frequent, they are for greater dollar values per share. The profits typically are allowed to run and the losers on balance are restricted.

Our system makes no forecasts; perhaps more money is lost following forecasts and hunches than anything else. Wealthy Investor Weekly follows trends and says one week ahead: “If such and such happens next week, do this.” If such and such does not happen, it will have different instructions for the following week. It does not forecast; it listens to what the market has to say about its direction. It translates real market activity into action.

Stock trends and human psychology are at loggerheads no matter how often we are warned. For example, the worst time of all to invest is when the majority is enthusiastic about investing; the best time is when there is nothing but doom and gloom. Computer programs have no feelings; they simply interpret a set of rules. In this case, our computers provide a disciplined system that could be followed by a child, no experience necessary.

A typical pattern

In a falling market, there is nothing but doom and gloom day after unforgiving day yet instead of looking forward to what must surely come, investors shun markets like the plague. When (not if) the typical pattern repeats itself, they will wait until the easiest profit part of the next recovery is over before getting the courage to invest once more.

An entire generation will miss the best opportunity of their lifetimes. This is an amazing time for young people, those who missed the stock market plunge, to begin a regular savings and investment program.

You can think of a market decline being like the preparation for a New Year sale at your favorite department store. Ownership of shares will be at a huge discount. But this is also the time when fear is at its highest, illogical though that is because the worst is already past.

However, that fear is perfectly natural. Only with a trusted system are you likely to have faith to go against what the doom and gloom news reports are pumping out. The economy will be in a shambles at such times; unemployment will be high, the number of layoffs frightening. No wonder investors (other than the delighted pros) are scared stiff.

But the stock market is a leading indicator. Analysts are quietly calculating the likely state of the economy nine or twelve months hence and buying stocks (and sometimes entire companies) at fire sale prices.

Wealthy Investor’s proprietary program is set to detect as early as possible any change in market direction and while it is not always right it is close enough in most cases for you to be counting profits while others are still focused on negatives.

It will not tell you where to invest money but it surely will tell you when – and when to get out. It will prove timing of the market is possible and it will give you 500 things to invest in, all senior stocks in the S&P 500 Index.

[UPDATE] The online service expected to launch in late March 2012 is expected to follow thousands of stocks in 29 indexes by the end of the year.