Jubilee Prosperity

Let us be the first to paraphrase what our Nobel Prize winning portfolio strategist client wrote in his Graduate School of Business Investment textbook:

A) Why would anyone with a winning system want to give it away?

B) He did not know anyone who could consistently beat the market with selection or timing.

C) Therefore he concluded dollar-cost averaging index funds was a superior market technology.

With over a half century in the markets, we learned the hard way from a very few who consistently beat the market.

We gladly share it with our subscriptions for income and profit.

We agree automatic dollar-cost averaging value funds or stocks outperforms most, along with buying closely held dividend discount companies (TopTen Seasonal Portfolio) and watching what the wealthiest insiders do with their money (Big4 Weekly Asset Allocation).

For those still not wary, we note our TopTen closely-held dividend discount values and Big4 assets embody and exemplify the profitable discipline sometimes called contrary investing.

Having said that, it is neither easy nor enough to go against the crowd.

Some people who habitually go against the crowd end up in mental institutions or on medication.

To illustrate the challenge of profitably going against the crowd, we refer our readers to the illustrative chart below:

http://www.sharelynx.com/chartsfixed/1TradingSentiment.gif

The old saying, Buy low and sell high works.

But how do we know what is low, what is high and when to act?

We buy at the point of maximum pessimism (fear) and sell at the point of maximum optimism (greed).

We employ Open Trailing Buy and Sell Stops as belts and suspenders to enter and exit positions in case we are distracted or emotional.

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This entry was posted on Monday, February 22nd, 2010 at 7:58 pm and is filed under Prosperity. 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.