I tried to mind my own business. I really did. But I just couldn’t help myself.
A couple of days ago, I happened to overhear a conversation between two men discussing life, politics and the stock market. I wasn’t about to stick my nose into the life and politics part, but when they started talking about the stock market, I had to say something.
These two men, both probably in their 40s, are out of the market right now and jeopardizing their financial future. They believe that stocks are overvalued, and because they took economics in college, they just know the market is about to crash. And when it does, they will buy back into stocks. (So they say anyway. I’ve seen this over and over again through the years, and the people who wait for a pullback to buy almost never do because they are afraid the pullback will get bigger.)
At that point, I couldn’t take it any longer. I politely joined the conversation and explained that stocks move higher over the long term based on earnings. Okay, they understood that. So I asked them, “Why is it a problem for the stock market to be at all-time highs when companies are making more money now than they ever have?”
“Well, the market has gone up for too many years,” they said, “and it has to come down eventually.”
I hear that all of the time – from my clients, at speeches, on television, everywhere. And I get it. I really do. Our brains are wired to avoid pain, and losing our hard-earned money definitely hurts. I also get that we’ve had a few corrections in the last 17 years that were unusually painful. But think about all of the money that could have been made and wasn’t in this bull market, which actually goes all the way back to 2009. It’s not only the actual losses that have wrecked investors’ portfolios; it’s also the missed opportunities.
If you know me at all, my little story here doesn’t surprise you. You know that I am extremely passionate about making money in the stock market, for myself, for my clients and for individual investors like you. If you’ve seen me on television or in person, you know how excited I get talking about this subject. But I think my volume rises the most when I hear investors are too afraid to own stocks. That is the single biggest mistake you can make. You won’t lose money if you’re out of the market, but you won’t make any either, and the only real way to build wealth is to have your money working for you to make more.
So what if I told you that you can invest in companies of the future, and that you can do it with less risk than the overall market? Does it sound too good to be true? It’s not, because that’s what I have been doing for my clients for the last 13 years, and now I want to do it for individual investors like you, too.
It’s Time for the Next Generation of Building Wealth
That’s why I am thrilled to welcome you to MoneyWire. Over the coming months and years, we will talk about a new way of investing that Wall Street is too big and too lazy to figure out. A way that profits from some of the most exciting trends playing out in decades. I call it next-generation investing, or NexGen investing.
I have friends on Wall Street and have been part of the club, but let’s be honest: their ways have gotten old and stale. Wall Street is still too comfortable with “advisors” getting paid big money to tell their clients what? To invest in the same stocks that the guys in the next office and the next building and the next street are telling their clients to own. For them, there’s no reason to separate from the herd. They collect their fat commission checks and their clients stay with them because nobody else has a better way of investing.
I’m here to tell you there is a better way. There is big money to be made in the next great companies that will make a difference in our lives and in our world, and they are trading among the thousands of stocks that Wall Street ignores. Finding those companies means going about things differently, so I developed a multifaceted approach that Old Wall Street is too lazy to try.
That’s what I want to share with you. NexGen investing goes beyond the myopic focus of Wall Street. The big firms settle on one way of researching stocks, and that’s all they do. I equate my approach to a three-legged stool that incorporates 1) fundamentals, 2) charts/technical analysis and 3) intangibles, catalysts, themes and other drivers that won’t show up in the stock screens used by 99% of other analysts.
This new way of investing increases our winning percentage, keeps our losses both infrequent and much smaller than our gains and enhances our ability to find the next big gainers – regardless of where the market is trading. Those big winners all come from next-generation themes, unstoppable trends that will create more opportunities than Wall Street can even imagine right now because they aren’t looking.
Let me put some real numbers on that to illustrate my point. Of the stocks I have recommended across multiple newsletters since 2015, 135 made us money while only 31 were losers. That’s an 81% win rate – in a period that even included two corrections.
Wall Street can’t touch that! They’re just not built for it. Recent data showed that 66% of actively managed large-cap funds were not able to meet their benchmarks (usually an index). Think about that. Investors had a one-in-three chance of picking an actively managed mutual fund that was able to do its job and beat its benchmark. I wouldn’t take those odds with my money. Would you?
I say this not to brag but to show you that there is a better way. Just as I told those two gentlemen, you can be in the market and making money in innovative companies leading the way in powerful megatrends, and you can manage risk so that you don’t have to lose sleep at night being scared that a correction is going to come along and wipe out everything you’ve made.
I can’t wait to tell you more about it here in MoneyWire. So once again, welcome! I will talk with you again very soon.