Jack and Jill

Jack and Jill went up the hill to bring a
pail of …money. Money? They are continuing
to fill up their pail with pillory without any
consideration to the value of these equities. They are not worried at all as they are buying
“safe” common funds.

Everyone cognizes common finances are safe. Jack
and Jill cognize they don’t cognize how to pick good
pillory so they go forth that to the monetary fund manager. He is an expert.

When you look at the long term record of 99%
of the common finances you will see that expertness has
been sadly lacking. I detest to remind you of the
2000 to 2003 period, but I must. In fact I must
state you it is going to go on again. Now you
desire to cognize when….and sol make I.

And that is the problem with almost every
monetary fund manager. As long as the market is going up they
can’t make much damage to your account, but when
it revolves over and caputs down they have got no idea
how to put when a bear market is in progress. Not a single 1 of them will acknowledge that
cash is a position.

Cash is a position? They are in shock. Of
course of study they are. If brokerage clients put
their money in a money market account while the
market is falling it intends they do not do any
committee at all and if they urge this to
their clients the brokerage manager will fire
them because he won’t make any money either. “Keep your clients fully invested or I’ll show
you the door” is the manager’s comment.

You must learn when to sell. Any sap can
buy, but it is the wise adult male who cognizes when to sell. To see the status of the overall market one
of the best indexes is the SP500 Index. Your
broker compares everything he makes with the
SP500 because it is a wide alkali of 500 stocks
that are widely traded.

The high-grade index is the SP500 Index. Draw a 40-week chart of the shutting prices. If you
don’t cognize how inquire your broker. He will tell
you. Write it down and salvage it. It is very
simple. Rich Person him put up a 40-week Simple Moving
Average to look on that chart. Look at 5 years
worth of prices. Immediately you will see that
if you are in the market while the 40-week ma is
going up you are making money and if you are out
of all your places while the index average is
going down you will not lose money. It doesn’t
get any easier that that.

Jack and Jill can fill up their pail as the
market is going up and need not slop their
accretion while they walk confidently down
the hill retention their bucket full of cash not
equities.