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* Without having to buy expensive
software or update charts every day?
How Fast Could Your Money Grow? Here's a handy 'rule of thumb' to help you quickly figure out how much money you'll have in the future based on the return you're getting today. It's called 'The Rule of 72.' You simply divide the rate of return into 72 and the answer is the number of periods it will take for your money to double. Example #1: You have $10,000 in a mutual fund at 12% per year. How long will it take to double? Answer #1: Divide 12 into 72 and you get 6. That's the number of periods. Since we were talking about 12% per year, the period is one year. That means it will take 6 years for your $10,000 to become $20,000, assuming you take no money out or put any money in in the meantime, and ignoring the effects of taxes and inflation. Example #2: You have $10,000 in a program that is getting you 2% per month on average. How long will it take to double? Answer #1: Divide 2 into 72 and you get 36. That's the number of periods. Since we were talking about 2% per month, the period in this example is one month. That means it will take 36 months for your $10,000 to become $20,000. That's the same as 3 years. At this same growth rate your money would double again 3 years later, again 3 years after that, and so on.
$10,0000
3
$ 20,000 |
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Ready For a Little Investment Secret?
Actually, it's a pretty big investment secret. You might even think it was 'TOP SECRET' since many financial advisors know a thing about it. It's called 'Riding The Wave With ETFs.' When you understand its profit potential, you may feel like falling off your chair. First, though, a little background... 'Doing The Dolphin' Have you ever watched a dolphin swim? They undulate through the water, first breaching the surface to exhale, then diving back down again. Up, down, they cycle through the waves,over and over again. It's a beautiful thing to see. Making money in stocks can be beautiful, too. Each time our market wave timing system turns UP (long wave) we buy the 10 strongest ETFs -- those most likely to rise in price. Each time the wave turns DOWN (short wave) we sell the 10 weakest ETFs -- those most likely to drop in price.
So how are we doing? Here is
the performance
you could have achieved simply by holding 10 ETFs during each wave.
*Adobe PDF file format. Be sure to enlarge the view to 800% after opening to see all the action!
Duplicating
Warren Buffet
This is where you need to be sitting down. We only suggest this so you don't hurt yourself when we reveal what we're about to tell you. ;-) Imagine holding a $1 dollar bill in your left hand. Now imagine growing that dollar by a tiny 2% over the course of the next 30 days. What would you have? You'd have a dollar in your left hand, plus 2 pennies in your right. You'd now have $1.02, just 2 cents more than you started with. Doesn't sound particularly impressive, does it? And what exactly does this have to do with becoming the next Warren Buffet? Here's what ...
You see, Mr. Buffet is reported to have started Berkshire Hathaway with about one million dollars and to have grown it to one billion dollars 30 years later. Mathematically, that simply means he grew the fund's money at a compounded growth rate of just 2% per month, on average. But this tiny 2% monthly rate of return will keep DOUBLING your money every 3 years!
During our
Wealth Weekend webinars we
refer to the exponential growth of money over time as the 'Banker's
Secret.' It has the power to make you fantastically wealthy without
being an investment genius, or holding a master's degree in economics.
All you need is a 'slow and steady wins the race' approach to your
investing. Start with $10,000 and (God willing and the creek don't rise) 3 years later at 2% per month you'll have $20,000. Three years after that you'll likely have $40,000. The rest of the doubling progression looks like this: $80,000, $160,000, $320, 000. $640,000, $1,280,000 ... you get the picture. Now that you've learned how to duplicate Warren Buffet, here's another well-kept secret...
The average down wave (bearish market headed down) has lasted 5.5 weeks. Although some waves have been as short as 2 weeks (these were usually 'head fakes') and one lasted an entire year, overall the average wave length, both directions combined, has been 11.3 weeks. Bottom line: the market goes up for a while, then it goes down. Then it goes up again. If it just went up, where's it going next? You got it. Down. At some point it will reverse direction and go the other way. That's right, back up.
Each time a new wave begins, we buy our 10-pack portfolio and hold it until the wave changes direction again. While we're waiting, we do not sell positions that are out-of-the-money, nor do we sell positions showing a nice profit. We hold the entire portfolio until the wave runs out of gas and reverses. That's when we sell all 10 position, 'go to cash' and use (hopefully) the profits plus our original capital to acquire 10 new ETFs geared to profit in the other direction when the wave changes. This strategy keeps us in the market at all times, so we never miss a single day's opportunity to make a buck! Think of this strategy as a 10-cylinder engine, with each cylinder banging away rhythmically. If now and then one or more cylinders misfire, the resulting hesitation in the engine's performance is barely noticed. Likewise, sub par performance by one, or even a few, of our ETFs will be offset by above the above average performance of the remainder. This offers us portfolio and risk diversification and keeps draw downs low and manageable, allowing us to remain in an aggressive profit posture with regard to equity selection, yet simultaneously hedge risk while maximizing return.
Sure, you knew that the market goes up and down, sometimes way down! But you'd never know from trying to decipher all those stats financial pages, watching the 'money honeys' on TV (or seeing Jim Cramer throw a tantrum) that these medium-term waves are so common. So how does knowing about market waves help us? This is a 'biggie', so pay close attention! Because of massive paper money inflation by the Fed, especially since 1971 when our money system was 100% disconnected from gold and silver, the stock market has a net overall positive buoyancy, meaning that its long term trend is up. Sure, the stock market goes down from time to time, but it wants to go up! Hold a cork near the bottom of a swimming pool and let go. That's what the stock market wants to do. Over the long term, it has to go up since the billions of dollars in fiat (paper money) liquidity the Fed's been pumping into the economy all these years ultimately finds its way into stocks! However, en route to its ultimate altitude, the market cycles through up periods and down periods. That's not to hard to understand. Watch a dolphin swim. It undulates through the water, first breaching (arcing up) then diving (arcing down), over and over again. That's what markets do; they oscillate.
But here's the problem. This is another biggie! The stock market trends like the ocean tide. The tides are unstoppable trends. The tide comes in and the tide goes out. When the tide comes in, every single boat in the harbor, from the smallest rusty rowboat to the most magnificent cruise liner, goes up. When the tide goes out, every single boat goes down.
Why? Because stocks move with the overall market. This is why most stocks go down in price when the overall market is declining. It's as though someone were letting the water out of the bathtub. Even great stocks are 'fighting the tide' when the market is in a 'down' mode. Make sense? As I mentioned earlier, you do not have to have the IQ of an average stock broker to understand this. Even a higher IQ will work (only kidding, Wall Street!)
That way you get two bangs for your buck.
1. A good stock will tend to go
up in price. The Time to be Short Selling Stocks is When the Tide is Going Out. That way you get two bangs for your buck.
1. A weak stock will tend to go
down in price.
When the tide is coming in, we are long (buying). When the tide is going out, we sell short. Fortunately, there are now contra-ETFs that make money from a falling market. You can buy them just like any other stock with the click of a mouse.
An ETF is a lot like a mutual fund, just a lot better. It holds a basket of stocks in the same market sector (just like a mutual fund), but has no front load fees. Plus, you can trade ETFs with the click of a computer mouse. Mutual funds only update their share price at the end of the day. An ETF updates it price, live in real-time, just like a stock. Here are two good web sites where you can learn about ETFs:
1.
Wikipedia.com Because there is now an ETF (and a corresponding contra-ETF) for just about every market index and sector, we can ride the overall waves in the stock market up and down with ease. In recent years we've made huge profits in gold, oil, Vietnam, Brazil, China and other sectors and economies simply by buying ETFs during periods where the tide was coming in. When the tide was going out we sold short the weakest ETFs we could find.
No, its not a new Latin dance craze. A contra-ETF makes money when the market is going down. For example, Proshares.com offers a contra-ETF called the Short Dow 30 (trading symbol: DOG) that returns a 1% profit for each 1% the Dow Jones Industrial Average (DJIA) drops. They also offer a doubly leveraged contra-ETF -- UltraShort Dow 30 (trading symbol: DXD) that returns a 2% profit for each 1% the DJIA drops. The good news about these ETFs is that you no longer need to short sell stocks or dabble in index put options (if that's 'Greek' to you, forget it because you won't need it anyway). First Things First: BEAT INFLATION! An investor must always outperform the rate of inflation as the very first step in building real wealth.
[*** Visit http://www.shadowstats.com for a private sector viewpoint on true core inflation. For your information only. Not associated with ETF Wave Trader.] Today, any investment that returns (on average) less than 1% per month will cause the buying power of one's money to go backwards. Today's investor simply must obtain a return on investment (ROI) greater than 12% per annum. It is only the portion in excess of this already high yearly rate that will cause true growth in the value of one's financial holdings. This is truly where 'the rubber meets the road.' By this benchmark, the average mutual fund grossly under performs (as does, regrettably, the average financial planner). Fortunately, if you know which sectors to invest in, beating today's soaring inflation is still relatively easy to do, the reason being that the financial markets are like a see-saw: when one end goes down, the other end goes up. For example, as dramatic as the collapse of the U.S. dollar has been (and it's only going to get worse), equally dramatic has been the rise in the oil, energy and precious metals markets. Unfortunately, the average small investor has not been seated on the rising side of the see-saw. The cost to subscribe to ETF Wave Trader is $1,995 USD per year. You can pay us directly via PayPal's "send cash" feature to this e-mail address, or by clicking the 'Pay Now' button below:
If a friend wants access to the ETF Wave Trader service, please contact us for information about our generous, FREE Affiliate referral program.
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E-Mail The Institute Of Higher Earning us a financial research, trading and educational firm located in Milford, New Hampshire, USA. We take great pleasure in helping people learn how to get out of debt and manage their money prudently. We believe that trading and investing is the best opportunity possible to make a living from home and encourage everyone to learn how. We provide a number of courses and services relating to debt elimination, stock investing and Forex trading. We invite the visitor to visit our other web sites.
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www.WealthWeekend.com One final word. We are not a licensed broker or financial advisor and cannot provide personalized financial advice. We provide the ETF Wave Trader service for educational and research purposes. Should you decide to trade our signals in a live money account, you do so at your own risk. What you receive as a subscriber to ETF Wave Trader is access to our Model Portfolio. If you wish to emulate our portfolio in your own holdings, you do so with full personal responsibility. There is risk in all trading and investing. Past results are not a guarantee of future performance. Always trade and invest with genuine discretionary funds, meaning you should never trade or invest with funds you cannot afford to lose and live comfortably without. |
10 Second Explanation... ETF Wave Trader is a subscription market timing service that lets you make money in both a rising and a falling stock market. We tell you when to buy ETFs that profit from a rising market, and when to buy ETFs that profit from a falling market ― so you can stay in the market at all times and make money in BOTH directions.
This Service Could Be Just The Ticket, Even If You... * Have no prior investing experience. * Don't have much money to start with. * Don't know which stocks to buy, or when. * Are not a rocket scientist. * Are scared stiff of losing money. * Have already lost money in stocks before. * Don't have time to watch the market (or are just afraid to look!). * Always seem to get into the perfect stock at the perfectly wrong time. * Are terrified that the entire stock market is going to crash one of these days. * Don't understand why your investment advisor is slowly impoverishing you (but s/he means well). * Have any other reason(s) why your next egg isn't growing (or is actually going backwards!).
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