How To Invest Like A Professional

Did you know that the Dow Jones Industrial Average has given up nearly five years of gains?

Well, you may be thinking this: How long will it take me to recover my losses? months? years? It really depends on two things that you have no control over, at all: (1) The market. (2) The performance of your the mutual funds you own.

It’s like this: If you are still holding losers (mutual funds that underperfom the market), it means you are stuck on stupid. Instead, you need to switch into a mix of mutual funds that will match the market’s performance, long term. Easy!

Do what you control, and don’t worry about what you do not control. For instance, do the following: 

1. Implement an investment strategy that works every time it ti tried.
2. Analyze mutual funds that are candidates for you to invest in.
3. Do not waste time trying to predict what the market will do or which stocks or mutual funds will outperform the market. Why? That’s a game that losers play, and it’s a game that the experts hope that you, too, will play. Games where you try to beat the market are profitable for the investment adviser you hire, not you. You may have already noticed that there are as many games as there are experts. Today, I‘ll show you how that game works so that you won’t be tempted to play it and lose your hard-earned money by investing managed funds, and/or asset-allocation, target-date, lifecycle, lifestyle and balanced funds that underperform the market.

Remember, you only control two things: (1) The investment strategy. (2) The core mix of investments that you have decided to use.

After you choose an investment strategy and a core mix of investments, you must become a disciplined investor. What does that mean? It means that you must invest, long term, without tweaking your investment strategy, ever! What does not tweaking it mean? It means that whenever there is a correction (the market drops by 10% or less) or a bear market (the market drops by 20% or more) you must have the courage to stick with your investment strategy and not tweak it, at all.

Okay, so is there a step that you can take, right now, that is prudent? (The word “Prudent” means what a knowledgeable investor would do under similar circumstances.)  Yes! Do this, today, while it’s fresh on your mind: Learn about an investment strategy that has been around a long time. You should use an investment strategy that is proven and timeless, which means it works, long term, every time it is tried. And, you need to pick a core mix of investments that will match the market’s performance, long term.

Do you believe that everything you’ve learned to this point can help you?

Would you like to learn more, right now? Easy!

Look up and to the right side of your monitor.

Do you see where it says, “Tell Me Where To Send Your Free Tips” ?

Well, that’s where you enter your first name and e-mail address and click, “Send My Free Tips Now.”

Best wishes,

Your teacher, Frank R. Cirullo