Forget Everything You've Learned

2008 was a rough year, no doubt. But don't start to think that you can revert back to your old tactics to make money in 2009.

Folks, the 90's are over. Done. And don't start to think this year is going to be the year we revert back to the 90's.

What you ACTUALLY need to do is the exact opposite of what you did in the 90's. The 80's and 90's saw interest rates fall rapidly, but conditions from the awful 60's and 70's were beginning to improve. We had smart political discussions, making business easier. Now that we have the exact opposite scenario, your strategy needs to flip as well.

Look, no stock market in the world is going up right now. Right now the bond market (which people aren't used to and nobody knows anything about) is where all the money is being made right now. As interest rates go down, bond prices go up. The government is POURING money into the bond market right now, buying treasuries and more corporate bonds. As people start to feel safer in the economy, corporate bonds will appreciate in price, making you money.

The reality is that the stock market will probably continue to move sideways for several more years. That's not exactly heartening since we've been moving sideways for almost a decade now, but it's the truth.

We in the United States have a surplus in our 401k's, our savings, etc. The rest of the world is going to be developing and joining us in the middle class in the coming years. In order to do that they're going to need capital, which we have. THAT is the opportunity, right there. I'm sad to say that you won't be able to buy and hold mutual funds like you used to. You'll have to get in and get out where the assets are appreciating, so you need to get educated.

When everything goes up, everyone's a genius. But the difficult times like now separate the people who know what they're doing from the others, so you better get educated and be on the side that actually makes money.

If you're willing to let me teach you about the bond market and get you ready for these times, click here.

Private Mentoring

I’ve got another really interesting thought for you about how we believe in investing and the truth if you just look at results. I warn you, this isn’t going to sound right to you. That’s because it is right.
Let’s take the global stock market for now. Not your country, but the whole world.
The world economy is going to be vital and it's going to grow. You don’t want to just think in terms of one country, even ours, just because economic, business, and tax policy affects how successful you’re going to be in that one country. Believe me, the vitality, the ambition, the courage, and the ingenuity of people around the world who want a good, educated, safe comfortable electronic life for their families will not be denied.
The growth will be there, and they will need our capital. So from now on you can afford to be very, very choosy. You don’t have to invest in uncertain situations. Money will be scarce, and you can pick and choose.
I know this isn’t the way most of us think. But this is the new world. You can afford to think like this. You can demand that everything be right before you commit, and you better take the responsibility to evaluate each deal carefully.
You can know the real story about every company you invest in, and everybody you loan money to. You can demand only good deals. It is a buyers market for investments now, and it’s going to be forever.

Crazy Investors Make You Money...AGAIN!

My Crazy Investor Index isn’t always a buy signal. People who get fearful in a bear market are right to do so. But the Crazy Investor Index can be a great sell signal if there’s exuberance in a bear market, or it can be a great buy signal if there’s outright panic in a bull market.

Right now the Crazy Investor Index is flashing volatility and fear, but I don’t think we’re seeing a buy signal. Soon enough though, we will see people getting more and more happy and confident and THAT will be the time to strike and sell, sell, sell.