September 30, 2022
Hello everyone – Happy weekend to you all
Yes, the market sank 500 in the lift today.
Don’t despair. It’s a blip when you look at the overall uptrend in the markets over the long term.
John has sent out several trade alerts this week. I have sent a couple of LEAPS out that will expire in 2025. John has entered around four LEAP trades in total.
These include trades on:
RIVN
BRKB
NVDA
PANW
If you would you a copy of the LEAP trades, please respond to this post. (Facebook does not like me advertising John on my page, (they think it's spam or he’s a fraud) and until I get my email listing up and running, this is how it has to be).
I listened to an interview between Pisani and Jeremy Siegal today. He agrees with John that stocks will be much higher in 10- or 20 years’ time. They both disagree with Stanley Druckenmiller, who sees stocks falling down a mineshaft next year and being at a similar level to where they are now in 10 years. Siegal made a good point by emphasizing that stocks overcome inflation in the long term. He went on to say that stocks have given a 6.7% return after inflation over the last 30 years.
He also cited the value of indexing. That is, investing in passive index funds. He said that 90% of large-cap active managers underperformed their benchmark after 10 years. Additionally, Siegal pointed out that you can’t beat the cost edge that passive funds have. Think about the cost between investing in a passive index as opposed to an active fund. They give you a variety of stocks, greater diversification, and lower risk and usually at a lower cost.
What does John provide his clients/subscribers?
He provides trades that are low risk, i.e., spreads, LEAPS.
His client fee is relatively low.
He diversifies across asset classes.
He recommends a set-and-forget portfolio.
He does all the research for you.
Which provides a greater return – passive funds or John Thomas? Of course, you could always use both. I do.
In the final part of the interview, Siegal recommended being in good dividend-paying stocks over the long term and not to think about timing the market. Most times when people try and time the market and get out, they end up getting back in at a market top. Human psychology, being what it is, prevents us from buying stocks when they have fallen a lot. FEAR grabs us and paralyzes us. That’s why you follow John, so you know when to buy. And that’s why you will be able to prosper long-term in the financial markets.
For those of you who are interested, Jeremy Siegal has the 6th edition of his book out called Stocks for the Long Run. There are five new chapters, including updates on real estate, Bitcoin, and ESG investing. Recommended reading.
The Summit replays are up on www.madhedge.com
Click on September 2022 Summit Replays in the upper right-hand corner and then choose the speaker of your choice.
Happy weekend.
Cheers,
Jacque
