But we will not talk of cabbages and kings. The time has come to end this blog…although I will consider starting a new one at Wealthy Investor.
If you have been following this blog and the portfolio updates at www.sydneytremayne.com/ under the Portfolio tabs you will have seen the system I have been teaching works as expected – slightly better than the major indexes and with a good deal of safety.
The methods we have spoken of are suitable for inexperienced and somewhat-timid investors. The methods are not extravagant but they add a few percentage points to the long-term average of 10 to 11 percent for the S&P 500 including dividends.
The correction is over
I warned recently that this blog was coming to an end, but I did not want to leave you in the midst of a correction that many thought was the start of a double-dip recession and attendant bear market. As expected, the doomsters were wrong. The correction (and, yes, I’m breaking one of my own rules by making a guess) the correction is over.
It is understandable that when people have lost half their retirement savings they are spooked by the first market decline. But corrections such as the one we have just had are part of the normal psychological tug of war between greed and fear. When the market gained as rapidly as it did, some prudent investors decided it was time to take their profit. The market pulled back as it always does and headline-hunting advisers weighed in with predictions of the end of the world.
As I have said before, do all you can to avoid following the crowd, and to avoid the greed and fear spread by that crowd. The way to win consistently with stocks is to use a system you trust and to stick with it regardless of what markets do temporarily.
The work is done
I am ending this blog for two reasons: I believe it has done its work. Those who have followed Gaffer (www.lunchwithgaffer.com) have an excellent and conservative tool if you will but use it. You already know more than most investors ever will and you already know that what I teach is easy stuff. Your future is in your own hands now, where it should be, not relying on others and putting your money at risk with their opinions. You have a system and you know it works.
The second reason for ending this blog (and for ceasing to market Gaffer) is that I need more time for Wealthy Investor Limited. Some truly startling things are happening in that company. I continue to test and to tweak and results with the S&P 500 and the Dow 30 are now so beyond belief that the marketing problem is being handed to a PR firm in New York.
But although the raw numbers are unbelievable (I would not believe them in your shoes) we are working on absolute proof. If you download the free book at www.thewealthyinvestor.info you will also receive some 180 annotated charts of the Dow 30 so you can see exactly what the system in doing, how it is doing it, and why.
It’s transparent – if that is not a dirty word now
You will see a system of market-driven flexible trend lines unlike anything I have seen elsewhere. You will also discover how the system uses virtually invisible resistance points to make buy or sell decisions.
Clearly, this is now where my focus must be. Too many people rely on me for it to be otherwise.
For those who have been following this blog and those who have commented, I appreciate you and I thank you for your support. The portfolio will be updated later today for the last time.
All the very best,
Sydney Tremayne