My Three-Pronged Approach to Beating the Market By Dr. Steve Sjuggerud
The key to successful investing isn't what you'd expect... You don't need to understand everything. You don't have to look at every number. And you can certainly know too much – which often leads to your ego getting in the way of common sense. Instead, the key is finding the right things to study. You simply need to figure out what really matters... what works... and then forget everything else. Everything else is just noise. And focusing on the noise will distract you from what's important. 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 an incredibly successful way to make money. I built it into a simple system of my own. It can do what my finance professors always said was impossible: consistently beat the market. Today, I'll share it with you...
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If you're familiar with my work, then my investing system might sound familiar. I buy things that are... 1) cheap, 2) hated, and 3) in an uptrend. That might seem simple. But finding investments that are cheap, hated, and in an uptrend is hard. They don't come around often. And when they do, it certainly doesn't feel good buying them. But these are the pieces that matter if you really want to succeed when investing. And to me, they're all that matters when making any investment. First, you've got to understand value. You want to understand what you're buying and how much you're paying for it. The exact valuation measure isn't what's important. But getting a feel for value – including the value relative to other assets – is crucial. Then, you want to buy something when others aren't interested... when it seems like the world hates your idea. When that happens, the worst of a decline is likely over. After all, who's left to sell if everyone hates an investment? Now, here's a very important detail... Neither of the above pieces matter if prices are still falling... If there's one thing I've learned in nearly 30 years of investing, it's that prices can always fall further than you'd imagine. And that means you must wait for prices to begin moving higher. That's the market's way of telling you that things have turned a corner. When this all works, you end up buying at a great price at the perfect time. That's exactly what happened in 2010, when I started pounding the table on real estate... The whole world had given up on real estate after the housing crash and the financial crisis it sparked. But for me, the crash was the most obvious buying opportunity I'd ever seen. Real estate was dirt-cheap and completely hated, but the worst was behind us. Things were already getting better. But no one could see it. I spent the next few years buying up as many properties as I could... many of which I still own. And I sold several for hefty profits along the way. I bought a cheap, hated asset in the start of an uptrend. It was my investment system in action. And it has worked out perfectly as real estate prices soared in value. Now, you don't need to follow my investment system to make money in the markets. But I do urge you to find what works for you – and stick with it. Good investing, Steve P.S. A decade ago, I formalized my investment approach. I built it into an advanced computer system, capable of finding the best opportunities on its own. It has helped my True Wealth Systems service beat the market by roughly 50% over the last decade. And I recently sat down to share the details of how it works... You can check it out right here. Further Reading Steve spent a lot of time in classrooms on his path to a PhD in finance. But he would ask himself the same question time and again – if my professors are so smart, why aren't they rich? And that's what led him to one of the most important lessons he ever learned... Read more here: The Biggest Lesson I Learned While Earning a PhD in Finance. "Jaw-dropping valuations are a classic hallmark of a Melt Up," Chris Igou writes. And even though we're in the final stretch of the Melt Up, following the trend is still the smart thing to do today... Learn more here: You Shouldn't Stress About Sky-High Valuations. |
INSIDE TODAY'S DailyWealth Premium This hated market could soar to new highs... I wouldn't normally invest in this market. But today, nearly everyone has given up on it. And it's starting to break out once again... Click here to get immediate access. Market Notes BABY BOOMERS SEND THIS 'BIG PHARMA' STOCK HIGHER Today, we're checking in on the bull market in health care... Regular readers know our colleague Dr. David Eifrig believes the aging Baby Boomer generation is a huge tailwind for health care stocks. As they get older, Boomers will need more medicines and treatments. Today's company is working to ensure that those seniors get the care they need... Eli Lilly (LLY) is a $260 billion pharmaceutical giant. It develops and produces a range of vital medications, from diabetes treatments like Trulicity to cancer drugs like Alimta. More than 45 million patients look to LLY for its many trusted meds and therapies... and with 73 million Baby Boomers projected to hit age 65 or older by 2030, that demand isn't slowing down. In its most recent quarter, Eli Lilly's sales hit $6.7 billion – up 23% year over year. As you can see, Eli Lilly shares have soared in recent months. The stock is up 155% over the past four years and just hit an all-time high. As more Americans age, this health care giant should continue to thrive...
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