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Why This Service is So Important and Valuable
- Like nature, markets also have peaks and valleys.
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So each stock and fund has its own degree of volatility, and this can work to your advantage.
If you go to "cash" when your investment enters the upper "Exit Zone", and re-invest when its price has fallen into the lower "Entry Zone", then you hold more shares as the stock or fund recovers.
Thus you partake in more of its growth.
- EXAMPLE:
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If an investment loses 50% of its value (as many stocks and funds have done), then it has to double in price just to get you back to even.
Growing at a rate of 20% per year, it would take almost 4 years to regain this loss, and markets don't usually gain 20% each year.***
History of Changes in S&P 500
(1961 THRU 2002)
| |
1YR
%G/L |
5YR
%G/L |
10YR
%G/L |
15YR
%G/L |
20 YR
%G/L |
| Average |
11.59% |
12.75% |
12.62% |
12.86% |
13.09% |
| Median |
15.40% |
14.38% |
14.62% |
13.15% |
12.84% |
| High |
37.43% |
28.72% |
20.04% |
19.61% |
18.59% |
| Low |
-26.47% |
-0.77% |
2.51% |
6.80% |
8.10% |
But wise investors who went to cash near the top, and re-entered near the bottom could have twice the number of their original shares working for them as the stock or fund recovers in price.
100 shares @ $10 per share = $1,000
$1,000 / $5 per share = 200 shares
While not all stocks and funds are this volatile, a good many of them do exhibit cycles where value can change 15% to 25% in a short period of time.
Look back at the historical volatility of your own holdings.
Were there some major moves?
If so, then calculate the shares you would be holding now had you been using this information.
Stop regretting, wishing, hoping.
Become an informed investor.
Subscribe today!
Joining is easy. Sign up now.
Then build your portfolio and begin receiving the information you'll wish you'd had earlier.
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