Don’t Fight Yesterday’s Investment Battle – Why Betting on Last Year’s Bull Market Always Fails

For example, hypothetically, if the case were true that the recent 2007 stock market squalls signified a coming bear top in the market, many players by definition would not recognize such and would, looking through the rear view mirror, be playing yesterday’s game, still investing in the dying bull market.

These types of long-term reversals do not happen often, but such reversals present opportunities to preserve past bull market profits and to invest in a new bull market’s investments. There is a fundamental change in the psychology of the markets when this transition occurs – and it needs to be recognized. But that is easier said than done.

I recall shortly after the great stock market bull of the 1980′s launched in 1982-3, many prominent investors were incredulous about the market’s powerful launch. After all, the Dow average had hit a peak of slightly over 1000 back in 1966, and was only finally 16 years later in 1982 decisively breaking through that level once again.

Even back then in the Stone Age, on the popular eighties-era NBC “Family Ties” television series, Alex Keaton, the character played by Michael J. Fox, exclaimed that 1000 was the new floor for the stock market! I think we all knew how important it was at that time for the stock market to exceed the boundaries that had restricted stock prices for over a decade and a half before 1982.

I think one of the reasons why many people were not more fully invested in the stock market during that exciting time was that they were fighting yesterday’s investment battle. Investors were scarred by the brutal collapse of the one-decision Nifty-Fifty stocks in 1973-74. Economic conditions were extremely poor during those years with inflation raging and interest rates soaring. These were the worst recessionary times since the Great Depression. Investors were in no mood to buy stocks – no return, no sizzle – at that time.

However, nothing had been more dazzling to the markets in the late 1970′s than the spectacular bull market in gold prices that climaxed at about $850 per ounce at the end of the decade. Indeed back in the late seventies up until the launch of the 1980′s super-bull market in stocks, gold dominated the minds of investors. Not only were gold prices and shares escalating at that time, but oil and oil service companies were on the march as well. This certainly compares in many ways with events in today’s gold and oil markets.

This dramatic 1970′s bull trend in gold was my initiation into the financial markets for the financially innocent 20-something I was then. But I found myself psychologically fighting yesterday’s investment battle soon after the stock market took off in 1982. Yes, I owned stocks, but I was still wondering when gold was going to recover, which by 1982 had collapsed in price to $300 per ounce after the speculative frenzy in per ounce prices broke.

Indeed, it is possible that gold prices and the stock market can move in the same direction. When the stock market took off in the early 1980′s, the gold market rallied from $300 – $500, and I somehow believed there was still hope for gold. However, as time passed, I realized the promise of equities and held stocks, and over time the psychology and mystique surrounding the gold market faded, that is until now, over twenty years later.

Where are we now in the scenario of transitioning leadership and bull markets? What market will be the most forceful on the upside in the coming few years? Well, the process began when the price of gold, oil, gold shares and oil shares in 2003 began escalating in a manner of building inflationary pressures after Federal Reserve Board monetary ease during the millennium recession. Gold and oil have more than doubled in price, and equities have risen with them in an unseemly liaison. In fact, they have risen so much (with gold now around $800 per ounce), oil, gold, oil shares, and gold shares may hit temporary resistance near or slightly above this level. See my article, Bulletin: October 24, 2007 – What Now on Gold?

However, the last four years of generally rising equity prices may be the limit to what we see in the stock market, as market-leading inflation plays (including traditional commodity inflation plays) hit resistance for now in front of the investment pack. In addition, the likelihood of a left-leaning President being elected next year may keep a lid on the general market.

That said, we may indeed have a short grace period in the time before the election of rising stock prices due to the very positive effect of recent Federal Reserve Board consecutive discount rate cuts. Growth stocks may do well in the near term, given a temporary cresting in inflation hedges. I believe the long-term inflation genie is in the hands of Federal Reserve Chairman Bernanke.

I have written about a building danger of underlying inflation in my article, Inflation and the Stock Market: Does Anyone Remember the Seventies? Gold, as an inflation hedge has already doubled in price. Nonetheless, the bull market in gold may continue for some time given that inflation still seems to be building and given that the 1970′s bull market in gold lasted ten years. Bear in mind that during the inflation of the 1970′s there were two waves of increasing prices for gold, punctuated by solid declines in between waves in that measure of prices and in the value of inflation hedges. We may now similarly be in a temporary topping of the first wave now around $850 per ounce. Whether the fever breaks for gold and other hedges and cools for a while remains to be seen. But as they say in Las Vegas, the cards have been dealt.

John Reizner was first exposed to financial markets when he started reading the stock quotes out of the newspaper to his businessman grandfather, who was legally blind, when he was about ten. Papa always told him: “Buy Triple A” (the best stocks). Later, John studied economics at both Vassar College and Columbia University, where he became intrigued by the link between psychology and economic theory. His current e-book, A Way to Wealth – the Art of Investing in Common Stocks, is available at his website,

12 Business-Building Principles For Serious Entrepreneurs

1. Know That Your Business Needs You To Exist.

You are the life-force of your business. If you do not make yourself available to build it, you will have no business.

2. Decide Why And How Big You Are Building Your Business.

If you do not know why or how big you are building your business, you won’t be able to survive the challenges ahead of you and you won’t do what’s required to succeed. If you don’t know where you are going, how will you know when you get there?

3. Decide How Much Time You Will Dedicate To Building Your Business Each Week.

You must dedicate some of your time to building your business every week. Creating a business requires investing TIME into the building process. You can build a business with a little bit of money, but you won’t build a massive business with a little bit of time. Just like your present job, no work means no pay.

4. Decide How Much Money You Will Invest In Building Your Business Each Week.

You must also dedicate some of your money to fund your business. To build your business requires tools. Whatever those tools are, you need to acquire them. Determine what tools you need and how much they will cost. Create a funding plan and a budget for your business. Every dime invested in your business must yield some profit or you don’t need to spend it.

5. Decide How Many Months/Years You Will Take To Get Your Business To Where You Want To Be.

Your business will take time to grow and develop into a self-sustaining enterprise. You will not get there overnight. It requires long-term planning and dedication. Your time-frame will be determined by how soon you desire the rewards of your business. How badly do you want those rewards? How long are you willing to wait for them?

6. Develop A Work Plan To Make Your Business Happen.

You must decide how you are going to work your business. You must have a written work plan and schedule that you are using or you will not be consistent. Consistency is the key to progress. Set achievement goals for your work. Check your progress against your work plan and make needed adjustments until you find what works best for you. Be flexible.

7. Understand The Purpose Of Your Business.

If you don’t understand what your business is all about, then you cannot dedicate yourself and will not be able to promote it strongly or defend it against challenges. Do not confuse your long-term business with a short-term hustle. You are either building a business that will change your future or you are simply looking to raise some quick cash for a one-time event.

8. Become An Expert At Explaining Your Business To Others.

Every business fills a social need. What need are you aiming to fill? You must be able to clearly explain to your prospects what you are doing and how it can benefit them. No one will buy from you or do business with you if you don’t know what you are offering or what you are doing. Study the business materials and use your product yourself. You must be the expert on your business. Only you can be the expert for your business.

9. Learn What You Have To Do To Build Your Business.

Every business has a business model. Learn and understand the business model for your type of business. You are building a self-sustaining referral business. Your business requires that you refer people to do business with your company. The more people doing business with your company, the greater your income.

10. Do What You Have To Do To Build Your Business.

You have to do a certain type of work to build your business. You have to encourage other people to use the services of your company and join you in promoting these services to others. Your work creates your business. Do your work and you will get paid. It takes money to afford the lifestyle you want. Remember, no work, no progress, no pay! That’s the reality of the financial world. Ask your present boss, if you ever forget.

11. Always Keep In Mind Your Reason For Building Your Business.

When you first decided to build your business, you had a reason that motivated you. Write it down and put it where you can see it daily. Read and reread this reason frequently to keep yourself motivated. Paste up pictures of the things you want to acquire. Talk constantly about the life you are in the process of creating. You will dedicate yourself to your business only as long as you believe in your reason for doing it. Without a strong, clear reason for building your business, life’s challenges will overcome you and you will fall by the wayside. Your business needs you to believe in it so that it can happen.

12. Understand That You Are An Exceptional Person, Just For Attempting To Improve Your Lifestyle. Most people settle for whatever life gives them because they do not understand that Life will always test you and give you only what you agree to accept. The lifestyle you live now is the result of the choices you made so far. Changing your choices always changes your life. Whatever choice you make, you will have to work at it. You get nothing from life without striving for it. You will work hard at being poor or you can work hard at being rich. The choice is always yours. If you are currently broke, then you should realize that you can increase your income to produce money. That is what you do when you engage in building a business.

—–Above All, Remember This—–

Building a business requires that you think like a business-owner and not like a wage-earner. Wage-earners work to make business-owners successful. The extent to which you readjust your thinking patterns from being a wage-earner to being a business-owner will determine your level of success in any business venture. See yourself as a business-owner at all times and you will succeed.

Work From Home Based Business Or Work From Home Job – The Surprising Truth

So you want to work from home? Surprisingly 76% of people, who are now profiting from home, came to the Internet looking for a work from home job. They were not looking into starting a work from home business; they never even thought of becoming an entrepreneur, but when the reality of work from home jobs became apparent a percentage, not ready on giving up on their work from home dream, ended up starting an Internet Business. If you are coming to the Internet wanting to make money online, while you the enjoy the comfort of your home, There are some truths that you must be aware of when looking for a work from home opportunity

People prey on the emotions of a work from home job. People are commonly seeking a position from home where they can get paid for their time, such as data entry, accounting positions, medical transcriptionist, or the dreadful telemarketing position. But what these job seekers don’t realize is legitimate work from home jobs are hard to come by. Usually if someone has a job they can run from home, it is because they originally started the business in house. If one is lucky enough to find a hiring position, it is snatched up so fast, that you don’t even have time to fill out the application.

The competition is hefty, and you are in a long line of stay at home job seekers. Because it so difficult to obtain a job from home, we have people preying on your emotions. Many claiming they have a secret source where if you pay them $35.00 – $ 100.00 they will provide you with a list of businesses that are hiring people to work from home. Sounds, Reasonable right? Wrong, these list are bogus slapped together and have no real value to you as a work from home job seeker. These are generic outdated and thrown together list that someone is trying to make money, by using the supply and demand tactic. The jobs are far and few, however they indicate they have a solution to your problem. No matter how appealing these may seem to you, they are not going to provide you with the information you need to allow you to make money from home.

If you are looking for a job and not a work from home based business, then you should never pay to be hired, or pay for a list of businesses hiring. Starting a work from home based business is becoming a popular choice for people. While it is not a job with administrative responsibilities, it is a legitimate and profitable way for people to stay home and make money online. Due to the fact that jobs are difficult to come by we are seeing more and more legitimate home based business coming to the Internet. While many don’t expect to start a work from home based business many are finding it a profitable choice. It wasn’t long ago work from home based business were not recognized by society as a realistic approach to securing an income. In today’s business society it is not listed as one of the top business choices for Americans, and abroad. Compared to the work from home job, it is easier to find a solution that works for everyone. The Internet has evolved more Internet Business have opened on the Internet, giving income seekers a wide selection of choices to fit their needs and desires.

Compared to a job, there will be a fee to getting started in a work from home based business. Many think this is not a legitimate opportunity because there is a fee occurred to getting started. This is true when looking into a work from home job, as you are being hired and never should pay to be hired by an employer. It’s just doesn’t make since, you wouldn’t go to interview and bribe them with money for the position. The same holds true with Internet Jobs. However, a start up fee for an Internet Business creates its legitimacy because you are starting a business. You get all the tax benefits that incur with your own Internet Business, you are starting a business, therefore there are start up cost that incur. You wouldn’t start a coffee shop without putting capital into that business. It is the same thing comparison with an Internet Business, Don’t be fooled into thinking this method is a free way to make money online, there are start up fees that are necessary to have your business profiting.

Of course there are pros and cons to both income generating opportunities. A work from home job, there is no start up fee; you can receive raises depending on your employer, and your skills. The downsize of a job from home, is that because the demand is so great for these positions, you are easily replaced. Many employers will go back to the market when a raise is becoming necessary on your part. I have seen and experienced where so many people are stuck with their current finances because they don’t dare to dispute a raise due to the fact they are easily replaced. This is all if you are lucky in a work from home job in the first place. Of course some consider you lucky just because you found a position in the first place, with the market so tough to find one in the first place.

If you are considering starting a work from home based business, there are some things that you must consider. First of all compared to a job from home, there is an Internet Business startup cost. Compared to opening your own bricks and motors type business these are a cheaper alternative. However, it must be factored and considered when looking for the right Internet Business to partner with. You also must consider marketing strategies, and a lot of people who start an Internet Business do not understand how to advertise properly. The key to making sure a business works for you, and then you must learn how to market your business. Finding the right mentor or online business coach will assist you in reaching your goals. There are many great online business coaches that you can find for free when you join your Internet Business. You just have to research and find someone who is willing to train and mentor you so that your business can grow. Even with the learning curve, and the start up fees, the amount of income you can generate is endless. Compared to waiting for an employer to give you a raise, you decide your income. Your efforts that you implement is what will determine how much or how little you want to earn online.

The desire to work from the comfort from home has opened doors for many people. Some who want the comfort of a job, and some who want the endless possibilities of owning their own work from home based business. Many times people do not see themselves as entrepreneurs, never viewed themselves as business owners, however the reality of the Internet is creating, and finding new skills for people. No matter which opportunity you decide to go further with, I just suggest researching and obtaining as much data as you can. The dream of working from home is easily accessible as long as you are diligent and research each possibility further. Having as much knowledge about the position in question will allow you to have a positive work from home environment, and still create a income, now that’s what you want …right? Then start seeking and enjoy working from home.