The Trend is Your Friend, Until it Isn’t

The phrase “the trend is your friend” is credited to Martin Zweig (July 2, 1942 – February 18, 2013) who was an American stock investor, investment adviser, and financial analyst.

It was a great quote that should have included… “Until it isn’t.”

Because trends (like everything else on Wall Street) can change in a heartbeat without you ever seeing it coming.

Consider this post another quick history lesson in the markets.

And if you, like millions of others, have been sitting on the sidelines since the 2008 meltdown, you probably shouldn’t read this email.

Back then, the best strategy/trend was to sell everything and stay out of the market.  Or, if you were “short” the market, you most likely made a fortune while others lost.

However, on March 6, 2009 the “trend” of selling came to an end.

The S&P 500 index hit a low of 666.  (The Mark of the Beast?)

And everyone and their brother was negative on the market.  Even Goldman Sachs (aka: The Vampire Squid) put out a report saying the S&P could fall to 400.

Ironically (or NOT) the predominant negative sentiment was a sign that the Wall Street “Club” knew the trend was reversing.

 

 

So, while they continued to tell investors to sell everything, they (Cough! Goldman Sachs, Cough!) were “backing up the truck” and buying everything at a huge discount.

To illustrate this point, the S&P today is near an all-time high of 7,637.

Do the math… 666 to 7,637 is over 11 ½ times increase in your investment.

And if you were brave enough to go against the negative trend (like “The Club” was doing) you would’ve made a fortune.

Unfortunately, most investors (including some of the nation’s biggest pension funds) believed the downward trend would continue.

As a result, many sat on the sidelines frustrated for over eight years…hoping and believing the market would crash so they could get back in.

Some have gotten back in (and have done well) but they missed eight years of the “Trend upward.”

This is yet another reason why constantly say how we’re living through the most hated bull market in history.

And for those who sat on the sideline, the “trend” has NOT been their friend.

So, now that we’ve had one of the greatest uptrends in history, do you think it’s going to end soon?

The Boyz in “The Club” want you to think so.

But, do you trust them?

If not, then read how you’re being set up for the greatest theft wealth transfer in history (HERE).

And will likely miss the next great bull market that we are currently in (HERE).

Share this with a friend…especially if they are the kind who continually says they will wait for the market to crash before getting back in.  And subsequently do not get back in.  They’ll thank YOU later.

And tell them:

We’re Not Just About Finance

But we use finance to give you hope.

“And you shall know the truth, and the truth shall make you free.”

~John 8:32~