In this episode we discuss the 6th wealth building principle: Profit from trends
Trend trading goes against the conventional wisdom of buying and holding stocks. I personally believe, based on my own history that buy & hold is a myth. Why suffer through an inevitable market downtrend? The dotcom bubble of 2000, the housing bubble of 2008…another bear market will occur, they always do. Why participate?
You can never accurately predict a market top or bottom, but I believe that there is enough margin for error that you can get in/out – early/late and still preserve your capital and build wealth.
Trends are occurring all around you. Companies, products, organization, societies…all experience a life cycle. Be observant, watch what’s happening, don’t knowingly get talked into betting on a loser.
True, after about 6 years the S&P500 recovered from the loss of the Great Recession. BUT remember, the NASDAQ has still never recovered from the dotcom bust of 2000.
Markets ebb and flow, learn to profit from the trend.
Subscribe to the Wealthsteading Podcast via iTunes: https://itunes.apple.com/us/podcast/wealthsteading-podcast/id896417058
Hosted by John Pugliano. For more information visit us at: www.wealthsteading.com or www.investablewealth.com
Copyright © 2014 Investable Wealth, LLC. All rights reserved. This podcast is for informational purposes only and is not intended to be a solicitation, offering advice or recommendation of any security. This podcast does not intend to provide investment, tax or legal advice. The content is strictly the observations and opinions of Investable Wealth, LLC. The information in this podcast is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. Investable Wealth, LLC is an investment advisory firm licensed in the State of Utah.