Imagine for one minute if we never listened to nor read the news and instead focussed on nothing but charts.
First, we would have noticed that the stock market has been on a monster run for over a year and a half.
Second, we would also have noticed that we could have thrown a dart at fifteen stocks last year in March, forgotten about them, and we'd have probably multiplied our investments by a factor of ten (or more).
So ..... what got in our way?
Negative news, negative blogs, negative investment commentary, negative economists, negative youtube posts ...... negative everything.
How, then, would our tendencies for "keeping up-to-date" over the last year and a half resulted in a positive? How has it helped us in the stock market?
That would depend, I suppose.
Sure, physical gold has doubled in that time frame, and a number of precious metal stocks have done much better than that. But ..... we could have bought PIR (Pier 1 Imports: NYSE) for ten cents last year in March ..... today it closed at $10.62. A $5,000 investment in that company last year would be worth $500,000 today! And I can show you all kinds of "non-precious metal stocks" that would have provided you with roughly equal returns as Pier 1 Imports would have. Take a look at CAR (NYSE) for another example.
If only we'd SHUT off the NEWS!
Admittedly, shutting off the news isn't an easy thing to come by anymore; TV, radio, newspapers, the internet, friends ......
I can find hundreds (if not thousands) of stocks trading at ridiculously high multiples from their lows back in March of 2009 where I'd have been so much further ahead if I'd simply shut down all sources of media and concentrated on the charts. I've always said, "Trade what's in front of you," but I didn't always practice what I've preached over the last year and a half. Not only have I allowed extreme negativity to dictate my trading patterns, I've written my fair share of negative commentaries, also.
Yet, here we are, almost twenty one months into the single most amazing stock market reversal the world has ever seen.
Sure, I can point fingers at the Fed for "masterminding" all of this the same as any one of you.
But if I didn't know, I wouldn't have known.
I've done okay the past year and a half, but I can't help but think I'd have been so much better off if I'd just been, "clueless."