Transform Your Investment Mindset. Transform Your Long Term Wealth Accumulation.
The challenge of becoming a successful long term investor is rarely addressed in full. Without the proper foundation the markets will find out your flaws sooner or later.
The starting point is awareness and humility, because the bad news is that none of us are hardwired to be successful investors.
The Good News is that something can be done to turn this around but this needs self work and developing a well designed checklist.
Design is key too, and this means focusing on what really matters, and this means choosing the right assessment metrics.
Is your sole investment assessment metric returns? If so what was your position at the bubble highs? When did that metric tell you to sell in the previous bubbles of LTCM in 1998, Tech stocks in 2000, or stocks in general in 2008?
The chart below shows the S&P 500 rally since March 23. This has coincided with:
1. A deep worldwide recession,
2. Continued US earnings decline over the last 18 months,
3 Forward expected earnings falling back down to 2017 levels,
As a result of this divergence, the S&P 500 has violently broken its relationship with earnings. The 20 year correlation of 0.9 between ... link to article