blow-off top that typically occurs in the final stages of a bull market. It’s an explosive move higher that can send stocks higher than anyone believes possible. Steve is going to be staging a massive online event in a few days on October 24 to show you how to cash in on this opportunity... which, frankly, you may never see again in your lifetime. He’s even going to share a secret that could potentially help you make several years’ worth of profits with a single investment. There’s no cost to attend – but only with a reservation. (You can reserve your seat right here.) Boom. What boom? Since 2008, I’m down about 23%. A few of the companies went bust, others are just out of favor. Maybe they will return to health. The nice part is the income that rolls in every few months. The other nice part is that a few issues are three- and four-baggers with one headed very rapidly to 10. Too bad they cannot average out with the losers to form a nice flat line. We will just have to wait and see what happens in the next couple of years. – Larry L. Steven Longenecker comment: Your portfolio dropping more than 20% over 10 years in a bull market – with the market up 120% since the beginning of 2008 – is tough. But as you well know Larry, the nice thing about 10-baggers is that just one of them can pay for a bunch of “headed to zero” companies. Of course, position sizing matters, but I hope that the income coming in each
month makes up for at least some of your losses. We have stayed invested for the entire boom cycle and have done quite well. It worked for us. But then, I learned my lessons during 1981-82, again in 1987, and again in 2000-2002. Stay the course. Most people have no education in finances of any kind. A few of us have taken the time and energy to learn as much as we can. The payback is monumental, been “retired” since 2000 at the age of 52 (after working in corporate America for 35 years – yes, I started working at 17 with a work permit). No inheritance, no swamp critter, never worked for the government at any level, and no tech IPO. I don’t know if there is an educational conspiracy against financial literacy, but the case could be made. – Loyal Reader Steven Longenecker comment: We wish more folks felt like you, Loyal Reader... No comment on a conspiracy against financial literacy. But considering many students’ first experience with “money in the real world” is tens of thousands of dollars in debt for a piece of embossed paper, we suspect folks would do better starting at zero at 17 like you did. I pulled half of my 401(k) out of the market in spring of 2008 and got back all in April 2009. I retired in 2012, eight years early. – Jim K. Steven Longenecker comment: You simply can’t do much better than that, Jim. That’s the sort of power that the right type of market timing can bring you... adding eight years to
American Consequences 19
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