Dear Reader,
The stock market is down over 4% in 2010 and investors are wondering whether this will be a profitable year or not? Could this be a repeat of 2008? We can guarantee it won’t be, but it will be a difficult year to make money anywhere. Property prices are struggling and cash returns are nothing short of dismal and don’t cover inflation after tax is paid. In fact, in cash in the bank is definitely a losing proposition. So, where can you make money in 2010?
We believe the stock market. We do however, expect the stock market to make moderate gains over the year with the rally resuming in mid March, but we think the volatility will ensure most average investors lose money. The “trick” to the stock market in 2010 is two-fold.
1. You must pick the fundamentally best stocks in the market today. Stocks with good balance sheets, strong cash flows and good management. They should also fit into “investment themes” we believe will play out in 2010 and 2011 as recovery takes hold, albeit slowly.
2. You should also have a disciplined trading approach that ensures your capital is protected and ensures also that you buy stocks at the cheapest prices possible. Following a proven set of rules is the only way you can make money at the moment.
At Trident Confidential we focus on these two aspects of stock market investment. The results shown are from this week’s issue of Trident Confidential and prove that if you follow our rules and buy the stocks we recommend you do, you will make money regardless of the market.
Stock bought a week ago 10.50%
Stock bought 2 weeks ago 7.89%
Stock bought 2 weeks ago 15.38%
Stock bought 2 weeks ago 6.67%
Stock bought 2 weeks ago 11.40%
Stock bought 2 weeks ago 7.36%
Stock bought 2 weeks ago 21.39%
Stock bought 3 weeks ago 1.88%
Stock bought 3 weeks ago 16.75%
Stock bought 3 weeks ago 2.41%
Stock bought a month ago 13.72%
Stock bought a month ago -2.75%
Stock bought a month ago 14.39%
Stock bought a month ago 5.29%
Stock bought a month ago 6.75%
Stock bought a month ago 32.20%
Stock bought a month ago 8.56%
Average Return for Trident Confidential stocks bought in 2010 13.41%
Oh, sure we have losses from time to time, but if you follow our rules, those losses will be limited and will be far outweighed by our profits. For example, sold stocks (losses and profits) in 2010 resulted in an average result of 19% profit per trade being realised - and in a down market too. That’s where picking the fundamentally best stocks comes into play.
Picking the right stocks in the first place will ensure when the market does begin to behave itself, the stocks you hold will rise the most.
Today's New Stock in Trident Confidential
This small Australian company is on the cutting edge of new technology that will dominate several industries in coming years. While the company is only "young", it already has some pretty big clients including some of America's biggest companies and the support of the Australian Government. Also, one of it's biggest shareholders is an "icon" in the investment world with one of the savviest investment management teams in Australia.
At the moment no-one is talking about this tiny company, but they will be soon when one of the largest contracts in history is awarded to it's business partners. The flow on to our small Australian stock pick will be enormous.
To Join Trident Confidential, Receive the "Best Stocks for 2010 Report" and read about our Latest Stock Tips, The Hidden Gems Portfolio, Receive all Lance's Books on CD and Have Access to our Full Archive - Click Here
Until next time.
Kind Regards
Lance Spicer
Editor, Trident Confidential - Still...The World's Highest Returning Newsletter since 2005.
Lance Spicer is qualified and licensed to provide investment advice on Managed Investments, Equities and Derivatives.
Trident Investment Management Pty Ltd is an authorised representative (No 339798) of The International Securities and Derivatives Group Pty Limited (ABN 22 103 552 683) holder of Australian Financial Services License (AFSL 227544)
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Trident Investment Management Pty Limited
ACN 136 841 426
Po Box 3068
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Phone +61 2 95430406
Fax: +61 2 95430216
www.tridentinvestment.com.au
2010/02/24
2010/02/12
The Stock Market Strategy You Need To Know if You Want To Make Money
Amateur investors like to think that by paying close attention to the
economic news, they can invest at the right time and place. However, a
careful analysis of the past reveals otherwise. Because the savviest
(and therefore biggest) investors are always looking six to nine
months ahead, and because their money is what really moves individual
stocks, the action of certain stocks tend to reflect the news that
you’ll read six to nine months from now. For example, just think back
to March 2009, when the market blasted off with a 70% rise from
multi-year lows. What were the headlines telling you last March? That
the US financial system was in danger of falling apart! The world was
facing depression and that the collapse of the world economy was
imminent! Ah, but smart investors were buying, and if you followed
their lead, as we did, you did pretty well in 2009. In fact, we made
113% for the whole of last year including the nasty bit at the front.
The recent correction has everyone worried again. Most importantly,
the long bull market remains intact regardless of how you look at it.
So, while the world is worried about the headlines, “Greek Debt” –
“Chinese Growth Possibly Slowing” – “US Unemployment at Record
Levels”, the fact remains, companies are still reporting great
results, 80% of US companies have beaten analyst’s “optimistic”
estimates. What’s more, most companies are telling us business is
improving – particularly, Technology.
As for the current “correction”? Well, regardless of what journalists,
market pessimists and doom and gloomers will tell you, this is a
“garden variety” standard 10% correction we are having. It will end
very soon when enough amateur investors dump their stocks in total
despair. Markets turn when people stop selling, not when people start
buying. You have to wait until enough pessimism has been passed around
and people give up on the market. We are close to that point now.
Back in March 2009, when the market bounced, a lot of the people
talking now were saying things like, “don’t trust this rally”,
“sucker’s rally”, “the problems will get worse” and the end result was
they were 100% wrong. It was without a doubt probably one of the best
stock buying opportunities you’ll ever see. The headlines are again
trying to frighten you out of the stock market, and they’ll probably
succeed, and the professional investors will once again swoop down and
buy your shares. You’ll be happy they did too, until the market
bounces and you have that Homer Simpson “Doh!” moment, much like the
one so many people who sold back in February and March 2009 when they
watched the market just climb and climb in 2009. Back then I stopped
“shorting the market” with my Switch Strategy on February 21 and the
next week started aggressively buying stocks, for example Lynas for
$0.13 which is now $0.53 and Intuitive Surgical for $93.00 which is
now $322.00. You see I knew that the market would turn, and told my
subscribers it would, and it did. Regardless of “end of the world”
headlines, the selloff just didn’t make sense to me. On reflection, it
didn’t to anybody else either.
So, when will the current “correction” end? I can’t say, but it could
be a couple of days, a week, or two weeks, but it will end and today’s
prices will seem bargains and you’ll be kicking yourself. But hey,
that’s normal for human beings, our fear will always get in the way of
our common sense.
The secret to stock market success is not reading today’s headlines,
but jumping 6 months ahead in time and imagining what the “state of
play” will be then. And how do we know that? Listen to the guys
“running” the economy, not the idiot politicians (and boy, aren’t some
of them goons?), the guys running the “real economy” are the business
owners and CEOs of big companies and they are all telling us one thing
– Profits are growing and the outlook for business is good. Share
prices will eventually follow the company earnings. Stock prices will
be higher in a year from now and this current correction is an
opportunity to buy shares in companies whose profits and sales are
growing much faster than even the analysts expected, which is why the
Trident Confidential is investing in them. That’s all you need to
know.
Click to view this email in a browser
http://hosted.verticalresponse.com/230163/88737a713e/513000276/77647ad340/
economic news, they can invest at the right time and place. However, a
careful analysis of the past reveals otherwise. Because the savviest
(and therefore biggest) investors are always looking six to nine
months ahead, and because their money is what really moves individual
stocks, the action of certain stocks tend to reflect the news that
you’ll read six to nine months from now. For example, just think back
to March 2009, when the market blasted off with a 70% rise from
multi-year lows. What were the headlines telling you last March? That
the US financial system was in danger of falling apart! The world was
facing depression and that the collapse of the world economy was
imminent! Ah, but smart investors were buying, and if you followed
their lead, as we did, you did pretty well in 2009. In fact, we made
113% for the whole of last year including the nasty bit at the front.
The recent correction has everyone worried again. Most importantly,
the long bull market remains intact regardless of how you look at it.
So, while the world is worried about the headlines, “Greek Debt” –
“Chinese Growth Possibly Slowing” – “US Unemployment at Record
Levels”, the fact remains, companies are still reporting great
results, 80% of US companies have beaten analyst’s “optimistic”
estimates. What’s more, most companies are telling us business is
improving – particularly, Technology.
As for the current “correction”? Well, regardless of what journalists,
market pessimists and doom and gloomers will tell you, this is a
“garden variety” standard 10% correction we are having. It will end
very soon when enough amateur investors dump their stocks in total
despair. Markets turn when people stop selling, not when people start
buying. You have to wait until enough pessimism has been passed around
and people give up on the market. We are close to that point now.
Back in March 2009, when the market bounced, a lot of the people
talking now were saying things like, “don’t trust this rally”,
“sucker’s rally”, “the problems will get worse” and the end result was
they were 100% wrong. It was without a doubt probably one of the best
stock buying opportunities you’ll ever see. The headlines are again
trying to frighten you out of the stock market, and they’ll probably
succeed, and the professional investors will once again swoop down and
buy your shares. You’ll be happy they did too, until the market
bounces and you have that Homer Simpson “Doh!” moment, much like the
one so many people who sold back in February and March 2009 when they
watched the market just climb and climb in 2009. Back then I stopped
“shorting the market” with my Switch Strategy on February 21 and the
next week started aggressively buying stocks, for example Lynas for
$0.13 which is now $0.53 and Intuitive Surgical for $93.00 which is
now $322.00. You see I knew that the market would turn, and told my
subscribers it would, and it did. Regardless of “end of the world”
headlines, the selloff just didn’t make sense to me. On reflection, it
didn’t to anybody else either.
So, when will the current “correction” end? I can’t say, but it could
be a couple of days, a week, or two weeks, but it will end and today’s
prices will seem bargains and you’ll be kicking yourself. But hey,
that’s normal for human beings, our fear will always get in the way of
our common sense.
The secret to stock market success is not reading today’s headlines,
but jumping 6 months ahead in time and imagining what the “state of
play” will be then. And how do we know that? Listen to the guys
“running” the economy, not the idiot politicians (and boy, aren’t some
of them goons?), the guys running the “real economy” are the business
owners and CEOs of big companies and they are all telling us one thing
– Profits are growing and the outlook for business is good. Share
prices will eventually follow the company earnings. Stock prices will
be higher in a year from now and this current correction is an
opportunity to buy shares in companies whose profits and sales are
growing much faster than even the analysts expected, which is why the
Trident Confidential is investing in them. That’s all you need to
know.
Click to view this email in a browser
http://hosted.verticalresponse.com/230163/88737a713e/513000276/77647ad340/
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