I encourage my sons to read the daily newspaper. I want them to be aware of current events. I suggest you read the papers too - just do not make your investments based on them!
Profit by Looking Past the Doom and Gloom
Pay heed to the old Wall Street expression, “You pay a dear price for a rosy scenario.” When the crowd is scared and nervous, they hold back their investments and wait for better times. Ask yourself the question- do you sense the overall public to be optimistic or pessimistic about the stock market? All I hear are problems- ISIS terrorism, Ebola, the Euro collapsing- that is enough for most to hide in the basement. Invest for the long-term- forget about it!
I am not always bullish on the stock market, nor am I bullish on all stocks. I have and continue to stress careful stock selection. I use my proprietary Magnet® Stock Selection Process to isolate companies that are showing rapid revenue growth, rapid profit margin acceleration, and are producing strong cash flow. When I can find companies like this that trade at a discount to their growth rate and are under accumulation it is easy to tune out the noise. The good news is- we see plenty of ideas right now!
I always use the Wall of Worry as one of my guides. Valuation is the other. From my view, I am comfortable owning the best Magnet® and FACTS® stocks while everyone else is still expecting gloom and doom. When I can see over The Wall of Worry…I’ll be letting you know that too! For now, I think we are in a market that wants to keep on climbing.
By Jordan Kimmel, Chief Investment Officer at Investview, Inc. (INVU).
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