Lie: Investors Can Only Make Money When The Economy Is Good
The stock market is like a garden: it takes a little rain and a little sun to make it grow. But, that’s not what the financial wizards who run Wall Street want you, as an independent investor, to think.
They want you to believe that investments can only turn positive in good economic times and during Bull markets. They want you to expect your portfolio to only gain during those times, too.
It’s obvious why the industry spreads this philosophy: if they lose money, they can always blame the market.
In truth, you can make money in any economic condition, you just have to employ an investment strategy that is nimble and consistent, two things the financial industry (generally) and the mutual fund industry (specifically) are not.
During poor economic conditions, you can:
- Seize a risk premium by trading stocks that are doing well.
- Short poor-performing assets.
- Invest in commodities that are performing well, while taking short positions in others.
- Trade currencies
You can even turn your strategies into momentum- or day-trading systems that quickly change with the condition of the asset or market.
While independent investors get screwed in bad economy, wealthy investors use these strategies to make even more money.
Online Investing AI is developing advanced technology, including artificial intelligence technologies, that will be designed to find strategies in every market condition.
This is the final post in a series about lies financial wizards want investors to believe. For more information, you might want to read the first post in this series. It’s called Lie: The Market Is Too Complex For Regular Investors To Understand.
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Related posts:
- Seven Lies Financial Wizards Want Investors To Believe
- Lie: The Market Is Too Complex For Regular Investors To Understand
- The Secret ‘Get Rich Never’ Scheme Of Financial Advisers
- Lie: Only Financial Wizards Can Time The Market
- Small Investors Can Fight Back Against High-Speed Investing
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is one of my favorite financial books of all time. It's an allegory about a guy who has a terrible job, and how he overcomes challenges to achieve his dreams.
Good advice. There is always money to be made. You just have to keep your eyes open. The media loves to put “negatvie spin” blinders on everyone. Turn them off and tune them out. Go learn one of the startegies mentioned above. Learn to trade, learn the technicals, learn about forex you will make money while others sit around and complain.
Thanks for the wisdom and encouragement, Investing For Life!