Trusting Your Future to
FUNDS and the Blue Chips?
You May Be Playing to Lose ...continued
Timing is everything - except profitable!
As I said above, the S&P 500 - the index a lot of big-name mutual funds and brokerages hold up as the profit mark to beat - has gained only about 6.257% over the last five years...
To me, it's tragic to think that so many have depended on these blue chip stocks for their futures - especially since over just one year within this same period, MY favorite investment vehicle (you'll discover it in a minute) gained a whopping 44.6% for my readers!
And it barely involved any "trading" at all. To me, trading (whether it's the frenetic "day" variety or it's based on other short-term timing formulas) isn't investing. It's pure speculation...
Consider these stunning facts:
- BUY-AND-HOLD BATS .998 - A study published in the February 2001 issue of Financial Analysts Journal back-tested, using real market data from 1926-1999, over a million market timing strategies within all 6 major American asset classes - comparing them with simple buy-and-hold strategies over the same investment durations. In 99.8% of scenarios, the buy-and-hold investors gained more...
- MARKET TIMING 200% LESS PROFITABLE - Another 30-year study of market data from 1967-1996 concluded that investors who didn't have their money in play during the S&P 500's 10 most profitable months over this period (just 2.7% of the total time) gained almost 200% less than those who held onto their stocks for the duration. The antsy "speculators" ended up with barely more yield than Treasury bills...
- SIMPLE T-BILLS BEAT MOST SPECULATORS - Another body of research revealed that if an investor were out of the stock market during just the top 4.1% of the time between 1925-1996 (just 35 months over 71 years), they would have done just as well leaving their money in T-bills as they would have in the market...
- NO ROOM FOR ERROR IN MARKET TIMING - A study of 90 years worth of data (1901-1990) conducted by the SEI Corp. determined that in order to simply equal the market's 9.5% annual average return over this period, a "market timer" would have needed to correctly predict the market's ups and downs approximately 70% of the time. More data from the study showed that even if an investor (or fund manager, investing firm, whatever) accurately picked 100% of the market's downtrends and 50% of its upticks, he still wouldn't have beaten the market as a whole...
Convincing arguments for a buy-and-hold strategy of stock investing, huh?
But as encouraging as these results are to rank-and-file, do-it-yourself investors who trade little and hold long in the big indexes, what I'm about to show you in the rest of this report is something even more important to reaching your wealthy future...
It's the one investment tool that has allowed a relatively small number of savvy, open-minded readers - that truly objective few who actually achieve real financial freedom (yes, you could soon be one of them) - to tap into a single source of steady, low-stress, buy-and-hold stock market gains that has blown away all other types of securities investment for the last 75 years and counting:
In case you haven't guessed, I'm talking about small-cap stocks.
History's best investing strategy + history's most profitable stocks = bigger gains faster than you ever dreamed
A pair of studies show that for the last four decades or more, approximately 90% of stock market gains occur in just four trading days per year - both in the large-cap market as a whole and within the S&P 500 index... See how a buy-and-hold strategy pays off where excessive trading and "market timing" doesn't? Aside from being less interactive and less stressful (and less costly from a fees and taxes standpoint - more on this below), holding onto good stocks until you want to sell them is money in the bank... And in just a minute, you'll learn about a kind of stock investing that's 12 times more lucrative than the S&P 500 or the large-cap market as a whole. How many of your life's financial goals could you reach by "buying and holding" in THAT market, do you suppose?
Ignore for a moment what the mainstream investment press says about these low-risk, affordable securities. As I'll prove to you in just a minute, there's simply no better investment vehicle on the American money landscape in which to turn a small amount of money into an absolute fortune than the stock of small-capitalization companies... 
Why buy-and-hold cranks when other strategies tank!
But the best part about the whole deal is this:
In the small-cap world, where tomorrow's Googles, Pfizers, Exxons, Dells and Microsofts are enjoying their most rapid stage of growth unnoticed by the mainstream, "buy-and-hold" doesn't mean years - it usually means just six-24 months!
That's right: Whereas to most investors, it takes years (or decades) to amass a fortune in blue chip stocks with a buy-and-hold strategy, for those who are savvy and objective enough to look into the small-cap market, these same kinds of gains can happen in mere months - sometimes even weeks...
For instance, the small-cap stocks my readers have cashed in on during the last few years include stocks that would have, if they followed my recommendations, yielded readers:
- 221% in less than 6 months
- 146% in only 59 days
- 118% in less than 9 months
- 103% in just 28 days
- 61% in 11 weeks...
These are NOT extreme examples - but fairly typical ones. Read on and you'll discover not only these specific winning small-cap stocks (some of them I'd recommend again today), but also the real-life success stories my readers tell of - 245%, 322%, even 879% profits from my one-of-a-kind investing strategy...
But more on that in due time.
Right now, I want to PROVE to you that small caps really are where your money should be if you've got limited capital and time to invest - yet still want to achieve that dream vacation home or sock away that retirement nest egg that'll keep you living the good life without worrying about how you'll pay for it. Keep reading...
Revenge of the stock world's "redheaded stepchild"
Forget all that you've heard, been told or think you know about these misunderstood, yet incredibly lucrative securities. Despite their "redheaded stepchild" status among mainstream investment pundits, shares of small-capitalization companies represent one of the biggest sustained profit opportunities in the history of money.
The proof is in the numbers. The adjacent chart, compiled by the prestigious Ibbotson Associates investment firm, proves that small-cap stocks have spectacularly outperformed all others since before the Crash of 1929. Compounded over this same period, small caps have yielded 1,142% more profit than their bloated cousins.
Another famous study, also by Ibbotson, showed that in any given year between 1926-1996, the average small-cap stock outgained the typical large cap (read: blue chip) by 56%...
How do shares in small-capitalization companies consistently outperform those of established large-cap firms, you're asking? It's simple, really - a matter of scale...
Big, bloated companies can't grow as fast as smaller, newer, more agile ones - especially truly innovative companies (which are found almost exclusively in the small-cap universe, I might add). Think about it: It's much easier for a $100 million company to double or triple in size and profitability in a few short months or years than it is for a $100 BILLION company to do the same thing.
And if you're along for the ride, get ready for some high livin'!
Now, the million-dollar question (literally, if you're willing to give small caps a chance) is this: Why doesn't everyone know that small-caps stocks are where it's at for the greatest yields - or which small-cap stocks are the ones worth investing in for maximum profit?
That's another easy one to answer - because it's also a matter of scale...
| Even if you don't have 75 years to achieve your financial objectives, small-cap stocks can still help you make two, three, even five times as much money or more as the blue chips or big funds can over whatever time you have to devote to letting your investments grow. Find out how to do it yourself, money-back guaranteed, if you keep reading now... |
The mainstream is stepping over dollars to pick up dimes
More than three-quarters of the stocks on Wall Street fall under the $1.5 billion market capitalization umbrella that denotes a "small-cap" stock. Most of these are valued significantly less than this level of capitalization...
This small-cap universe is simply too much territory for mainstream stock analysts to cover. They have to spend all their time staying on top of the moves and trends in large-cap and blue chip stocks - because that's what 99% of investors put their money and trust in.
The same goes for the majority of brokerage firms, funds and other institutions. They're at the mercy of the prevailing "conventional wisdom" about investment, so they never give small caps a look. Beyond this, few large funds or investing institutions are cut out to deal with the inherent lack of liquidity of small-cap stocks - nor are they able to buy in small enough chunks to avoid radically inflating the stock price with their zillion-share buys (I'll explain more about this a little later)...
Basically, it's like this: The small-cap market goes virtually ignored by mainstream analysts because that's just not where their bread is buttered...
But this isn't a bad thing - not by a long shot. 
The mainstream's ignorance only means the pickings are that much more ripe for the objective investor who's willing to look into some tremendous profit opportunities in the fastest growing pool of stocks that are trading right now for next to nothing. In other words...
Tomorrow's Microsofts, Pfizers, GEs and Dells at prices that defy belief.
Imagine getting in on the mega-players of tomorrow - across any and every conceivable industry and market segment - right now, while they're undervalued, fast growing, yet still undiscovered by the mainstream...
Now imagine what you could afford that you never thought possible after just a few short months or years of THIS kind of investing...
All an objective investor needs to get started is the right information
But it doesn't come from stockbrokers, high-dollar blue chip investment advising services or name-brand portfolio managers. They're all too busy trying to rationalize recommending household-name stocks, and then blaming their lackluster performance on a "bear market."
And by ignoring small caps, a low-risk, easy-to-analyze universe of stocks that's 12 times as lucrative as the market's best-known indexes, they're literally stepping over dollar bills to pick up dimes - and making a handsome living by helping tens of millions of investors like you to make the same mistake!
Gee, thanks for nothing, right?
Right now, I'm going to show you how to get all the information you need to start making your fiscal goals a reality - even if you've got limited "buy-and-hold" time. I'm also going to show you why you should steer clear of all kinds of typical mainstream sources of investment guidance, including the one most of today's growth-minded investors habitually turn to:
Mutual funds. Keep reading...