Maximise Your Chances of Financial Success with The Performance Quadrant - Part 4 of 4
By Stephen Sutherland, author of Liquid Millionaire.Posted in the Category of Investing, Stock Market, Investment Fund, Wealth Building on 21st August, 2009.
Tags: financial success, investment fund, investment vehicle, make millions, performance quadrant, stock market.
How Market Strength Can Help You Make Millions
In Part 1, Part 2 and Part 3 of this series I told you about a unique tool that I have created that I think you will like. This tool can help you to quickly determine how much money you will make in any given period of time. Its name is The Performance Quadrant.
Today I will be showing you how – by linking all of the parts of the Quadrant together – you are being faced with the most amazing opportunity to profit.
The Performance Quadrant is unique.
How much profit you will make in any length of time, whether it is twelve months, two years or a decade will ALWAYS depend on four factors. By discovering how The Performance Quadrant works, you will realise that when making money in the stock market, there are some things that are in your control and others that aren’t.
Today I am going to focus on the last part of The Performance Quadrant that is out of your control – Market Strength.
Market Strength
Take a look at the model below:-
If the market’s uptrend is strong, funds are also going to be strong. For example in 1999, the Nasdaq went up 86% in one year and this was its best year’s performance in its entire history. In that very same year, investment funds were moving up 100%, 200%, 300% and even 400% in just one year.
Why?
Well, if you have started to put the investment puzzle together, you will have realised that funds were making huge gains because the market was also making huge gains. In other words, it was in an extremely strong uptrend. If we move to another year and compare 1999 with 2003, you will start to see the reason why market strength plays an essential role in determining how much money you are likely to make in any given period of time.
You see, in 2003 the Nasdaq went up 50%. This is still classed as a good year but it was clearly not as strong as 1999 when it went up 86%. In 2003, the top performing fund was the AXA Framlington Japan Fund. It went up 91.05% which is a great return but it was clearly not as strong as the best performing funds back in 1999.
The All Important Link
Can you now see the link between the fund you buy, the market direction and the market’s strength?
Good.
Can you also see that timing your buying will also play an essential role in how much money you make?
I am assuming at this point that you are starting to see the all important connection between the four parts that make up The Performance Quadrant. The fact that you are still reading this tells me that you are probably a person who is prepared to be patient when the market is heading sideways or downwards. That is a good sign.
Now here is a great question.
What is the probability that you will need to be patient over the next few years?
I believe very low and this is where it starts to get very exciting.
The Market Looks as if It’s Due a Move
As I mentioned before in a previous blog the stock market looks like it is due a serious move to the upside.
The market has not moved very much over the last 10 years and when a market moves sideways for a long period of time, sooner or later it MUST continue its upward trend. And when it does continue this uptrend you have a much higher probability of making money because – as you have previously learnt - three out of every four stocks and funds move in the same direction as the market.
If you have any questions about how The Performance Quadrant can help you to predict how much money you are going to make over any given period of time, please contact me or one of my team for a chat. Whoever you speak to, you can be sure there will be no selling, no jargon, just the facts.
Your friend,
Stephen Sutherland
The UK’s Leading Authority in ISA Trend Investing and Author of Liquid Millionaire
Please Note: As always, let me remind you that I am not a financial adviser and therefore not authorised to give advice on what investments to buy or sell.
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