The Quant's Approach to Beating the MarketBy Steve Sjuggerud Editor's note: Few people in our industry have a résumé as impressive as our friend Steve Sjuggerud... After graduating high school at 16 and earning a PhD in international finance, Steve worked as a hedge-fund manager... an analyst for a billion-dollar fund... vice president for a mutual fund... and held high-profile corporate board positions. But he left Wall Street two decades ago to help individual investors take control of their financial futures. He famously called the top of the dot-com bubble in January 2000, just two months before the peak. In early 2009, he told his readers that the worst of the recession was over. He "backed up the truck" to buy stocks in late 2008, even taking out a home-equity loan to gain more exposure. His impressive string of market calls has earned the attention of Bloomberg, the Wall Street Journal, and Forbes. Over the next few days, we're turning things over to Steve, who will discuss how he has honed his investment approach over the years... and what he's telling his readers to do right now...
 When I was in college, the 'efficient markets theory' was all the rage...
The theory is that you can't predict stock prices because all the information known about stocks today is already priced in. I understood what they were saying. But I'm math-driven. But I knew there was a way. Then, in 1990, I read Martin Zweig's book Winning on Wall Street. The book's subtitle was "How to Spot Market Trends Early, Which Stocks to Pick, When to Buy and Sell for Peak Profits and Minimum Risk." He built many simple systems that either beat the market or (more typically) equaled the market's return, but with a lot lower risk. Zweig wasn't the first to do this... But I found him at the right time. And I started building systems, too. Like I said, I have a math mind. And the math made sense... All I had to do was keep it simple. (Don't "curve fit" as they say.) And keep it logical. (Does this make sense intuitively?) The goal was to beat – or tie – the markets with a lot less risk. What I found was that Zweig was right and my professors were wrong... My professors said you couldn't beat the markets. But I've spent decades building systems that do exactly that. For just one example, if my True Wealth Systems readers followed my advice, they pocketed 343% returns between two trades on a simple biotechnology fund in just 26 months. Biotech stocks were breaking out to multiyear highs. Our system flashed "buy," and we pocketed enormous gains. Gains of 343% in less than two and a half years... That will sure as heck beat the market. And because the system works so well, we did it with a lot less risk. That's what my team and I do every month in True Wealth Systems. We do whatever our systems show us... whatever has proven to make big profits over decades and across all market environments. We've spent an incredible amount of time devising and testing True Wealth Systems. We've developed our own proprietary software to sift through mountains of data, looking for safe, simple strategies that beat "buy and hold." We've developed our own charting software. In short, we started from scratch, and we've worked for years developing True Wealth Systems from the ground up before sharing it with the public. We don't care if it's digging deep to find market anomalies or simply riding a trend in plain sight. If it works, we're interested. We have an incredible team. We've carefully thought about things. We've crunched the numbers in every possible way. We can't guarantee that what has worked in the past will work in the future... But from our testing, we know our systems are robust and work across many market cycles. I've spent the past two decades working in finance... I began as a broker dealing in international stocks. Then I was vice president of a global mutual fund. Later, I ran my own hedge fund. And for more than a dozen years, I've scoured the globe for the best investment opportunities and shared them with my True Wealth subscribers. I've learned a lot along the way. As I explained earlier, I'm a numbers guy by nature. I love intuitive ideas as much as the next person. But I want to make sure the numbers back up my ideas. And if they don't, I'm happy to move on. Over the years, I've found that the key to successful investments isn't looking at everything... or understanding every number. It's finding the right things to study. I've spent thousands of hours researching what works in investing. And I've come up with a simple concept that has proven to be incredibly successful for making money. My investing mantra is 'buy things that are cheap, hated, and in an uptrend'... That might seem simple. But it's actually hard to put to work in real time. And that's exactly why I built True Wealth Systems... And why I call it my life's work. You see, finding investments that are cheap, hated, and in an uptrend is hard. But we've built True Wealth Systems to do the hard work for us. True Wealth Systems identifies these opportunities around the world every month. My job is to find the absolute best ideas and deliver them to you. Over the past few years, this has turned into some incredible profits. My strategy of cheap, hated, and in an uptrend is similar to another investing strategy... what I call "bad to less bad" trading. From my experience, using this strategy is the best way to find triple-digit opportunities. And it's actually much safer than you might think, as I'll show.
| Recommended Links: | |  Read this before you buy another stock Dr. Steve Sjuggerud is finally revealing the secret system behind his most stunning predictions, which has led to gains like 324%, 709%, and 995%. Find out how his secret system works and what he's saying to buy now right here. | |
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At its core, 'bad to less bad' trading is simple... The idea is to find beaten-down assets. Ideally, they should have fallen 50% or more recently... Think real estate after the collapse in 2008. Real estate prices fell so much – and things were so bad – that no one was interested. By 2010, the average American was starting to believe that you could never make money in real estate ever again. But that's what gave us an opportunity... You see, when things are bad, most folks expect them to stay bad. But that's not typically what happens. In reality, things eventually go from "bad to less bad." A little bit of good news comes out. People realize that doomsday isn't here. And prices begin to rise. That's when we want to step in and buy. The biggest gains come when things go from "bad to less bad"... during the initial stages of a rally. By the time things get "good," you've already missed the majority of the rally. This strategy gives us a simple approach to finding the best opportunities around the globe. And it perfectly incorporates my ideas on intrinsic value, sentiment, and inflection points. I call True Wealth Systems my life's work because we built it to look at the things I look at and to think the way I think. In the real estate example, it did just that. And I expect it to continue working the same way going forward. That's why I just put the finishing touches on a brand-new presentation where I peel back the curtain on my approach in True Wealth Systems... In this video, I explain what you should be doing to prepare for what I predict is coming in a matter of months or maybe even weeks. It's a powerful system that pinpoints when to get in and out of all kinds of investments at the exact right time. This data-driven system is the reason why my model portfolio showed an annualized return of 77% across all of 2020. I'd urge you to watch my presentation before it goes offline by simply clicking here. Regards, Steve Sjuggerud
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