 Don't Invest Like the Drunk Under a Streetlight There’s an old joke that carries an important life lesson: A policeman sees a drunk man searching for something under a streetlight and asks what the drunk has lost. He says he lost his keys, and they both look under the streetlight together. After a few minutes the policeman asks if he is sure he lost them here, and the drunk replies, no, and that he lost them in the park. The policeman asks why he is searching here, and the drunk replies: “This is where the light is.” You may not have laughed at that. It’s not a very funny joke.
You also may not see the life lesson at first. The drunk is doing the easy thing rather than the right thing. Many of us do that every day. We don’t even have to be drunk. That’s why there are so many commercials for supplements that claim to lower cholesterol or shed unwanted weight. It’s easier to take one pill instead of diet or exercise.
Investors are guilty as well. As are academic researchers studying investing. I searched an academic database and found 419 papers on value investing. But there were only 14 on benefiting from seasonality in the markets.
It’s easy to understand why that discrepancy exists. Researchers need to publish for career advancement. It’s easier to research and write about something that’s well-studied. You have dozens of references at your fingertips. You can confirm what others have already verified. That’s the path to academic job security.
Seasonals, on the other hand, are more difficult to research. But they have the potential to deliver life-changing rewards to traders who apply them to their strategies…
 | AI expert Michael Carr’s new Apex Profit Calendar stacked up 20,000% compound gains over the last decade of historical testing. Outperforming the gains of NVIDIA, Tesla, Apple, Microsoft and Google. Now, Mike wants to share all the details of his next trade with you. Click here to see the details now. |
Use Seasonals to Outperform the Market To study seasonals, you can’t just go to the standard databases and grab information from fields that have already been well-established. You need to create some custom programming. You need to find new patterns in the data. It’s hard work, and few people are doing it.
This is where the investing lesson comes in. Few people make life-changing money in the stock market. Most use everyone else’s ideas to obtain results similar to everyone else’s.
That’s not necessarily bad. But like the drunk under the streetlight, you’re not going to find what you’re looking for. If you really want market-beating returns, you need to accept the challenge of searching somewhere that presents significant challenges (with some help, of course).
Seasonals is one area that offers significant profit potential. It’s understudied. Large investors aren’t front-running small investors like you may run into with certain value investing strategies. For example, large investors like Warren Buffett find the stocks. They report their positions. Others on Main Street start buying. Then the large investors lock in their profits and leave the little guys holding the bag. The Power of Short-Term Trading on Seasonals Being understudied is just one reason seasonals can beat the market. Trades based on seasonals are short term. This allows returns to compound at a rapid pace. Instead of earning 10% a year, investors using seasonals can earn 10% several times a year. That creates eye-popping gains over time.
I just completed a decade-long historical analysis on seasonals. I call this project my Apex Profit Calendar, and it’s at the core of my brand-new Apex Alert premium investing service. I found that this strategy had the power to turn every $100 invested into more than $20,000.
That’s an amazing 20,000% gain over 10 years.
Far more than the returns of NVIDIA, Tesla, Microsoft and Google during that same time.
And those returns are possible because we aren’t searching for ideas under the streetlight where almost every other investor is looking.
I’m sharing this research with a live demonstration of how my new AI-based calendar system works. Just click here to see it in action now.
Until next time, 
Michael Carr
Chief Market Technician, Money & Markets
Check Out More From Stock Power Daily: |
Privacy Policy
The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482.
To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or whitelist within your spam settings. For customer service questions or issues, please contact us for assistance.
The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: https://moneyandmarkets.com/contact-us/
Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication.
(c) 2023 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Money & Markets. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 800-684-8471)
Remove your email from this list: Click here to Unsubscribe | | | | | |
Post a Comment
Post a Comment