Jubilee Prosperity

Currently the Big4 are not only short Copper, Gold, Platinum and Silver, they are also short Big Stocks, Bonds, Notes, most Commodities and Currencies, with the exception of the Dollar. This is of course, highly unexpected after the Dollar declined 86% from 2001 to 2008 in terms of gold.

Happily, the Big4 allow significant opportunity for our $1000 a year TopTen Seasonal Portfolio of closely-held dividend discount ideas that outperformed the market. CDE was one of the stars, up 6.9 times from the Fall of 2008 to Fall of 2009 when least expected.

Of course, past performance is no guarantee of future results, maybe better. The average five-year dividend growth of our Winter TopTen Portfolio is 29%, comfortably above the cost of living.

Having studied human nature with money for over a half century, we are not going so terribly far out on a limb to suggest that Just as many tremulous investors regained their confidence in Bonds, Commodities, Notes, Precious Metals and Large Cap Stocks, they may be in for a rude awakening.

We found our best performance comes not from prognostications, which rarely live up to star billing, but from judicious use of Trailing MOC Market on Close Buy and Sell Stops.

We are happy to automatically follow a closely-held quality dividend value company down with a MOC Trailing Buy Stop until it reverses, and to ride a closely-held quality dividend discount company up with a MOC Trailing Sell Stop until it reverses, gratefully accepting the middle 80-90% of total return.

We have mentioned to subscribers the idea of using Bollinger Bands to place MOC Trailing Buy and Sell Stops. There is nothing magic about a specific percentage or number. There is much wisdom in consistently cutting losses and allowing profits to grow without guessing the future.

Today’s short message is to be of good cheer. It is to stay out of crushing usury debt. It is to have at least a third cash in reserve for the bleary, rainy wintry days. They are long overdue after four generations of Jubilee Spring Planting, Summer Growth and Autumn Harvest.

Most of all, please avoid becoming another bankrupted, foreclosed underwater statistic following the siren song of borrowing for clunkers or caulk during deflationary times, when debt service costs exceed real returns.

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This entry was posted on Sunday, December 20th, 2009 at 11:27 am and is filed under Market Psychology. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.