Getting Tucked in by Janet Yellen
Today I want to share a story from a reader named Ryan…
In 2008, Ryan was a rookie investor in his late 20s. When the financial crisis and stock market crash hit, he got crushed. Taken out to the backyard and beat with a 2×4. He was destroyed.
Then Ryan knew very little about investing beyond the mainstream propaganda that “buy and hold” investing was the only way to go.
Sit tight and never sell the theory goes. You’ll do just fine in the long run.
What a load of bunk… in the long run everyone is dead!
Ryan’s investments took a huge hit on that Wall Street wisdom…. one that can make the recovery back to breakeven extremely difficult (if not impossible).
And Ryan’s retiree parents got hit even harder.
Their investment advisors had them follow the very same “buy and hold” philosophy. And they told Ryan’s parents to “hold” all the way down to the bottom.
They watched one of their stocks, Citigroup, go from $60 share all the way down to 97 cents. All because “professional” advisors believed Citigroup’s “fundamentals” remained strong… despite its share price dropping like a stone month after month after month.
After reading my books, Ryan found out not everyone got waterboarded by the 2008 crash.
A number of traders made a bloody fortune during the Great Recession. In fact, these same traders have been able to make millions in both bull AND bear markets for decades on end.
And they’ve done it by rejecting the misplaced faith in fundamental analysis and “buy and hold” that dominate the mainstream.
Famed traders like David Harding, Martin Lueck, Larry Hite, Paul Mulvaney, Ken Tropin and Ed Seykota saw remarkable success by refusing to accept “wisdom” that says to always be long and never sell.
Instead, they chose something different: trend following
And as you know now, it’s an approach that’s made fortunes in both booms and busts. And it’s one that Ryan has now chosen to embrace in full.
As a trend follower, he no longer worries about the next meltdown or crash…
When he wrote me back he was confident: “I will be ready for a new bear market and will embrace it.”
I’m telling you this story because it’s really hard to break free from mainstream thinking. It’s so much easier to be like your neighbors, toe the line and do nothing except trust the government to take care of you.
Seriously, most people are happy enough that Fed Chairman Janet Yellen tucks them in at night with a kiss to the forehead. She is their god. Never question the queen.
They think they can just “buy and hold” because if there’s a crash, the Fed will save us all. It will all be OK as long as you trust your rulers.
But the few who break free of that reap the rewards.
Case in point… I recently spoke to Tom Bilyeu on Trend Following radio.
Even though Tom isn’t a trader, we can all learn something from him.
He’s an immensely successful and influential entrepreneur best known as co-founder of Quest Nutrition, the second fastest-growing private company in North America.
But Tom wasn’t always a wealthy high-achiever.
He started out as a self-described “lazy” twenty-something who was so broke he routinely searched through his couch cushions for gas money.
Today, he’s a 39-year-old multimillionaire and influencer. And it all started when he decided to escape from the mainstream narrative.
In this podcast episode, Tom reveals the secrets to his success, including…
- Why he told his boss to fire him… and how that made him rich
- The one critical question you must answer to achieve wealth and fulfillment
- Why removing emotion from decision-making is the most important thing you can do
- The one life lesson that’s been the key to his extraordinary success
- And how to break free from “autopilot” thought processes that are limiting your potential
Please send me your comments to email@example.com. I’d love to hear your thoughts. Please tell me exactly what you think. Don’t sugar coat it!