Saturday, August 20, 2016

This is bad…

Economy and Markets
ECONOMY & MARKETS | August 20, 2016

The Statistics Are Terrible

By Shannon Sands, Publisher, Dent Research

It's been quite a week!

The most memorable part for us, here at Dent Research, was the special live event we held on Thursday at 4 p.m. (EDT). It was called: Why Most Investors Suck Wind (and How to Guarantee YOU Don't!).

The statistics are really quite depressing…

As Jake Hoffberg (our newest analyst) explained, while stocks have produced annual gains of 9.9% over the last 20 years, average investors only produced 5.2%. That's around less than half!

That's terrible!

So why do average investors perform so badly?

And what EXACTLY can they do about it?

Together with Adam O'Dell (CMT), our Chief Investment Strategist, they spent an hour uncovering the most common and critical mistakes investors make and then demonstrating the fix.

And really, the fix is what it's all about. After all, none of us want our investments to suck wind!

This live event was by registration only, but since late Thursday night, after the 7 p.m. rebroadcast ended, we've been overwhelmed with positive responses and feedback. So, after a group discussion on Friday morning, we decided to make the recording of this live event available to you today!

If your investment portfolio isn't performing as well as you'd like…

Or if you're just curious to see what mistakes the average investor makes…

Or even if you're interested in learning better ways to maximize your investments…

Listen to this recording right now.

When you're done, come back here to see what else occurred at Dent Research this week…

On Monday, August 15, Adam instructed Boom & Bust subscribers to close out a very successful investment that he called "All About America." It was part of the low-risk strategy he implemented nearly two years ago to allow investors to stay invested in a toppy stock market and earn steady gains, no matter whether the market went up, down or sideways.

The trade involved placing a bet on the relative performance of three different stock markets: U.S. stocks, Chinese stocks, and emerging-market stocks.

In September 2014, his Cycle 9 Alert algorithm – which is designed to identify which sectors, stocks and country stock markets are poised to outperform – was telling him to buy U.S. stocks and either avoid or sell short Chinese and emerging-market stocks.

However, now his Cycle 9 Alert algorithm is telling him that the days of U.S. outperformance are at an end.

All told, Boom & Bust subscribers had the opportunity to earn around 9% on the U.S./China trade and 12% on the U.S./emerging markets trade.

Later that day, John Del Vecchio, Editor of Forensic Investor, wrote to you about how and where to find hidden profits. What you want to do is find those companies that pay investors first. And to do that, you need to find that hidden-profits trifecta, which John detailed for you.

(A behind-the-scenes note: right now John is busy perfecting a new strategy that helps identify these hidden profits for you. Stay tuned.)

On Tuesday, August 16, Rodney Johnson, Editor of Triple Play Strategy, wrote to you about the equity markets recently reaching all-time highs on the same day.

He asked: "Did you celebrate?"

He didn't, and as far as he can tell, neither did anyone else. No party hats or leftover confetti were found on the floor this time around, and that's a problem. But it's more than what's going on in the markets themselves, or on the political front. It's about what average investors are doing as well (or, more precisely, not doing).

On Wednesday, August 17, Harry explored in greater detail why investors perform so badly. As far as he's concerned, one big reason is that most investors are a victim of their own uncertainty and insecurity. They need to watch a trend long enough to muster up the nerve to jump in. Said another way: they get in too late.

Read the details from his email here.

(Another behind-the-scenes note: the first print run of Harry's newest book – The Sale of a Lifetime – is just a week away from arriving at our door. The official launch date is September 15, but we'll be offering some pre-launch opportunities to get your hands on a copy of this book, so keep on the look-out for those.)

On Thursday, August 18, John added two new short positions to his model Forensic Investor portfolio. When passing along instructions to his subscribers, he noted:

As the market inches higher nearly every day, it becomes more and more overbought. Valuations remain rich and profit margins are under pressure. Typically, this scenario sets up sub-par returns. But, we are far from a typical stock market environment, and it seems the normal rules no longer apply. That said, discipline forces us to realize that the risks to owning stocks far outweigh the benefits at this moment in time.

While we can't give you details of the two companies John is betting against right now, his warning is clear: be careful out there!

And after the Fed's July meeting minutes hit the wire on Wednesday, Charles Sizemore took some time on Thursday to give his Peak Income subscribers some insight into what the Fed is REALLY saying.

Charles is not a fan of the Federal Reserve, but he respects that their policy decisions can have a huge impact on income-oriented investments. A hawkish Fed means that borrowing costs rise… which in turn means profits get squeezed. This, in turn, impacts the funds currently in the Peak Income model portfolio and the market, so he pays close attention, even if he doesn't like them.

The long and the short of the mind-numbingly boring minutes is that the Fed is still very much in wait-and-see mode. But, members are leaning toward another rate hike this year. The bad news is that it means you're going to hear about it a lot more in the months ahead. The good news is that it really won't matter much – at least for Charles' subscribers. An extra quarter-point hike won't be enough to really crimp closed-end fund profits (the investments Charles focuses on in Peak Income) or have any really meaningful impact on anything else.

Finally, on Friday, August 19, Charles invited you to come to Palm Beach in October and buy Harry a drink.

Our annual Irrational Economic Summit is just around the corner, and seats are filling up fast, so Charles shed some light on what all the excitement is about. Besides the incredible line-up of speakers, including the key-note Honorable David Walker – previous Comptroller General of the United States and head of the U.S. Government Accountability Office (GAO) – and the dozens of strategies our panel of 14 luminaries will present to you, there is another unspoken benefit of attending the conference.


While you'll learn a lot from watching Harry on stage, if you really want to know what he thinks about something, buy him a drink afterwards. You'll have a conversation that you won't soon forget.

One of the keys to success in investing, finances, business – just life in general – is who you know. And the people who attend IES – speakers and guests alike – are people you definitely want to know!

That's a wrap for this week.

Enjoy your weekend.

Shannon Sands
Publisher, Dent Research

P.S. If you decided to finish reading this before heading off to watch Adam and Jake's recording, here's that link for you again. Or if you're not sure it's something you should watch, then know this. Adam has been able to achieve annual average gains of 46%. He's banked dozens of triple-digit winners (I'm talking 316%, 140%, even 336%) with investments he doesn't hold for longer than three months. This guy knows what he's talking about, and he can help you. You'll find the strategies he'll teach you in the webinar life-changing!

Subscribe to Our Premium Monthly Newsletter

Will you be one of the millions of Americans devastated by the coming safe asset slaughter? As a subscriber to Boom & Bust, Harry Dent, Rodney Johnson and Adam O'Dell will make sure you're not. In fact, they'll help you profit from the chaos that lies ahead.


facebook YouTube Google Plus Twitter

Economy & Markets: You are receiving this e-mail as a part of your free subscription to the Economy & Markets E-Letter.

As an Economy & Markets Daily subscriber, you're eligible for the full details on Harry Dent's most disturbing prediction in years. To uncover which one of the market's safest and most popular investments is about to get slaughtered, click here now to view his presentation.

Remove your email from this list: click here

To cancel by mail or for any other subscription issues, write us at:
Delray Publishing | Attn: Member Services | 55 NE 5th Avenue, Suite 200 | Delray Beach, 33483 | Phone: 888-211-2215 | Fax: 410-223-2682
Website: | Privacy Policy:

LEGAL NOTICE: Protected by copyright laws of the United States and international treaties. This e-letter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the worldwide web), in whole or in part, is strictly prohibited without the express written permission of Delray Publishing.

This work is based on SEC filings, current events, interviews, corporate press releases and what we've learned as financial journalists. It may contain errors and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility. The information herein is not intended to be personal legal or investment advice and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation.

No comments:

Post a Comment