| You are receiving this email because you signed up to receive our free e-letter, or you purchased a product or service from its publisher, The Oxford Club. If you are having trouble viewing this email, click here to view it in your browser. |
| | | Friday, August 5, 2016 | Issue #2861 | |
|
Famous Reality-TV Entrepreneurial Investor LOVES This Company
We've just uncovered a tiny company that's developed a breakthrough product in one of the hottest industries on the planet...
Forbes says it has the potential to grow bigger than television AND tablets combined. You can invest right alongside venture capitalists like one outspoken TV billionaire (whose name you would know) who's so excited by this company, he already invested in it not once, but twice.
And why not? We're looking at potential gains as high as a jaw-dropping 100-fold or more over time. Click here for the details. | |
|
It's Not the Economy, Stupid Alexander Green, Chief Investment Strategist, The Oxford Club
 Sometimes it's hard to fathom why some folks struggle so much in the stock market.
But then I read my mailbag. Consider this recent letter from
John S.:
"Mr. Green continues to recommend stocks even though the economy is flat, the Fed is set to raise interest rates and we have two congenital liars running for president. Is he not paying attention?"
It's a fair question.
We all have a limited attention span, and there's a lot happening out there in the world. We're all drowning in a sea of data. So the important thing is "What are you paying attention to?"
If you're an investor and spending your precious, limited time on economics, politics, market trends and Fed policy, good luck.
You're going to need it.
As investment legend Peter Lynch famously said, "If you spend more than 13 minutes analyzing economic and market forecasts, you've wasted 10 minutes."
History shows that investment success does not generally accrue to macroeconomists, geopolitical pundits, Fed watchers and market timers. It accrues to people who understand and analyze businesses.
If you run a successful organization - or used to - think about it. Did you sit around in meetings analyzing global economic growth, currency trends, political rhetoric or central bank policy?
If so, it must have been a short career.
The Last Great Source of Income...
Dividends are just about the last source of investment income left in America.
And in 2016, many companies are slashing their payments. We've already seen cuts ranging from 25% all the way to 76% on companies including CenturyLink, Wynn Resorts and Marathon Oil. Click here to learn more. | |
Why do business people not waste time yammering about stuff like that? Because there isn't a thing they can do about them.
That's why they focus instead on issues like generating sales, managing expenses, finding cheaper capital, raising productivity, hiring better-qualified employees or emulating their most successful competitors.
These are exactly the sorts of things you should focus on as an investor: business fundamentals... and bottom-line profits.
But what do you hear each day in the financial media instead? Here's a recent sampling, followed by a dose of reality.
- "This is the weakest economic recovery since 1949." (Interesting for historians, perhaps. But as an investor, it tells you nothing about what lies ahead.)
- "Economic growth is now tracking at a 1% rate in 2016, the weakest start to a year since 2011." (Another backward-looking statement that has no bearing on future stock market performance, since equity investors are looking six to nine months out.)
- "The dollar has also weakened, buckling under lackluster U.S. economic data." (Yes, and it may well strengthen again next week. Notice that pundits always complain that a strong dollar hurts U.S. exporters, and a weak dollar is bad for everyone else.)
I could offset these negative headlines by commenting on recent net job creation, "If you're an investor and spending your precious, limited time on economics, politics, market trends and Fed policy, good luck.
"You're going to need it." | |
|
higher wages, robust consumer spending, cheap energy, low inflation, rock-bottom interest rates and home sales hitting a post-recession high, but I won't bother.
Because that, too, would be another form of tying your investment approach to the current economy.
And it doesn't work.
It will come as a shock to some, but there is absolutely no short-term correlation between GDP growth and stock market performance.
None.
Perversely, stocks often rally during the bad times and sell off during the good ones.
The last seven years are a perfect example. We've had an economy firing on only two cylinders and, simultaneously, a rip-roaring bull market.
Yet investors continue to obsess over each tidbit of government data, expecting it to provide some clue as to what the stock market will do next.
It won't.
Whether we're in a bull market, a bear market or something in between, what drives a stock higher is a string of better-than-expected earnings.
In 1992, political strategist James Carville famously advised presidential candidate Bill Clinton to quit talking about wonky policy initiatives, and focus instead on jobs and wages.
He boiled his advice down to four simple words: "It's the economy, stupid."
In the world of politics, that may be true. But there's a corollary for equity investors that's almost as concise:
It's not the economy, stupid. It's earnings.
Good investing,
Alex
| |
|
BANNED IN AMERICA: The World's Safest Investment
Have you heard about the strange bans cropping up from California to New York? Government offices, churches, even restaurants are getting onboard. The target isn't smoking, drinking or guns. We're talking about outlawing the world's safest investment... right here in the U.S.A.! But why would anyone want to do that? And why do all serious people need to understand what's happening, in time to prepare? This special presentation reveals everything you need to know. Please click here now. And prepare to be shocked... | |
|
| |
Poll a bunch of stock analysts, and you'll get mixed forecasts for gold. But what if the yellow metal has only been "playing dead"? Read On... | |
|
| |
In most cases, you should avoid debt at all costs. But with interest rates near zero, investors have a rare opportunity to profit. Read On... | |
|
| |
When a stock suddenly bursts upward, it often has to do with earnings. In today's Investment U Plus, readers are discovering a fast-rising company that Alex expects to profit from a coming "earnings surprise." To find out how you can get all the details, click here | |
|
|
|
The Oxford Club is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. Members should be aware that although our track record is highly rated by an independent analysis and has been legally reviewed, investment markets have inherent risks and there can be no guarantee of future profits. The stated returns may also include option trades. 
No comments:
Post a Comment
Keep a civil tongue.