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If you have read The Brainwashing of the American Investor,
you know that I have very little respect for the usefulness of the
Dow
Jones Industrial Average. (click
here) Still, most of the world looks to the DJIA to
determine what is, or has been, going on in the stock market. Most traditional approaches to
Investment Management would
describe the period from June, 2002 through June, 2003 as choppy, directionless,
volatile, flat, lackluster, or boring. After
all, the DJIA was right around 9000 on both dates. Nothing happened.
Just another dismal twelve month period for investors and their mutual
fund portfolios.
But thousands of people now
understand that any reasonable amount of time in the Stock Market will
provide enough volatility to produce opportunities for profitable
trading. To people who have studied the
QDI trading strategy (Quality, Diversification
& Income) presented in The Brainwashing of the American Investor,
the June, '02 thru June, '03 trading year was a bonanza. A
gold mine containing hundreds of high quality veins of profitability in NYSE
equities categorized as Investment Grade Value Stocks.
The chart below (courtesy of America On Line) clearly shows three major
trading
opportunities during this dismal year. The Brainwashing of the American Investor
teaches you how to take advantage of them... while they are happening.
When Market Volatility becomes your best friend, you have arrived as an
investor. Let's face it, uncertainty is the
playing field for the investment game, and until you learn to deal with
it productively, your just not going to move your portfolio Working
Capital in the right direction. Trading opportunities like
those illustrated below are out there... all of the time.
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