Fred Mcallen Investing Strategies

First and foremost - If you do not know Technical Analysis, then keep your money in your pocket. Don't be investing, trading, and losing your money.

You will be one of the Lambs to the Slaughter so to speak.

Here is what happens to the Lambs.

The following statistics from AARP show the devastation of the Bear Market of 2000-2003:

    * More than $7 trillion (that is equal to $25,000 for every man,    woman, and child in America) went down the investment drain during that three years.

    *   $700 billion in retirement savings were decimated.

    * A dollar invested in a Standard & Poor’s 500 Stock Index Fund in March 2000 was worth about 55 cents as of August 2002.

The 2007-2009 Bear Market was equally devastating.

Now, in order to develop an investing plan, you must first understand what you are up against so you can create a plan for success.

You must also avoid two fatal mistakes.

1. Relying on an Advisor to make your decisions

2. The fallacy of Buy-and-Hold

Here is why BOTH of those are a recipe for Disaster!

Stock market statistics for 110 years:

1900 - 2010

    * Since 1900 there have been 29 bear markets.
    * There has been a Bear Market on the average of every 3 1/2 years
    * Lasting an average of 1.7 years
    * Average decline of 29%
    * Average time to get back to break-even is another 1.9 years

What does that mean for you?

    * Bear Markets consumed 32% of the time of your investment
    * Getting back to break-even took another 44% of the time
    * Only 24% of the time was spent in net gain - Bull Market territory

Historically, it has taken more time to recover from every bear market there has ever been than the duration of the actual bear market itself.

Now, does it really make ANY SENSE AT ALL to have 100% of your money at risk 100% of the time when you know with 100% certainty that you will be hit with a 30% LOSS with the next Bear Market? Really?

Why is this important to you, the investor?

The last Bear Market started in 2007 and ended in 2009. You do the Math! Are you prepared for the next one?

The Financial Advisor Fallacy

Did Financial Advisors stop selling investments during the last market high in 2007 or the market high in 2000?
No! They sold more!
Handing every one of those investors a HUGE LOSS!

Think logically and realistically: Is a commissioned advisor going to pass up a sale to tell you to wait for a better time to invest? No! They will feed you some cock-n-bull story about diversifying, or dollar cost averaging, or 20 year rolling time periods. That is complete and total insanity. Nothing but sales pitches to convince you to hand over your hard-earned money.

Diversifying is good - but if you buy at the WRONG time you will still lose! Dollar cost averaging is a losers strategy, and rolling time period excuses and any other sales pitch they are throwing at you will cost you money. Lots of it!

Look, Stop losing money! Stop investing at the WRONG time. Learn to invest WITH the market and limit your risk. Don't be fooled, unsuspecting, or uninformed. It's your money! No one will protect it like you will.