Overcome Passive Investing - Patience is Bitter But Its Fruit is Sweet
In Humphrey Neill's 1954 book championing how to build wealth by going against the crowd, two of his TEN TIPS To GUARANTEE FAILURE stand out even now.
1) Follow the Public
2) Be Impatient
Only five words but better than any book on investing.
Did you know that on October 16th 2014 in the US Stockmarket, the volume of share dumping exceeded ALL THE DAYS in the last 850 Days? IN ONE DAY!
It was the worst weekly downside there SINCE SEPT 2011. THREE YEARS AGO. (Have a look at what decent investment funds have produced by way of returns since then).
In 'My Letter from Linlithgow' in autumn three years ago I recommended patience not panic. In August 2011 US and UK Stockmarkets fell over 3% in one day. Why? I can't remember, but you can be assured it was because of some worry reaching epidemic proportions thanks to media hype. Well, how else can so many millions be wrong together? It must be something they're all exposed to!
At the time NED DAVIS RESEARCH who make up their own minds from FACTS not scare stories, pointed out there had been eight occasions since March 2009 when over 3% falls took place. And what happened afterwards on average? Three months after the falls, the average rise in the US Stockmarket measured by the S&P 500 was...8.8%.
So next time you hear that "experts" are predicting this or that, REMEMBER it's really that only some do. Those who disagree with the consensus are ignored. So start asking yourself, instead of "What's wrong?" Ask instead "What's right?" And Welcome to the minority.
Last words to Early 19th Century German Philosopher JOHANN WOLFGANG VON GOETHE........ "I find more and more that it is well to be on the side of the minority, since it is ALWAYS the more intelligent".