ISA Investing and How to Achieve Index Beating Returns
By Stephen Sutherland, author of Liquid Millionaire.Posted in the Category of ISAS, SIPPS, Investing, Stock Market, Investment Fund, Wealth Building on 6th November, 2009.
Tags: index beating returns, isa, isa investing.
ISA Investing Provides My Clients and Me with Index Beating Returns
In my last two blogs I have told you how ISA investing has provided my clients and me with index beating returns.
Whenever I share returns such as my recent 12 month gain of 92.6% people always want to know how I do it.
Aim to Beat the Nasdaq
Did you know that the Nasdaq Composite is one of the world’s leading market indexes?
It is, and because it’s a world leader, it is one of the reasons why we try to beat it each and every year. In other words, it is very tough to beat. What we like about it is that it provides us with a challenge.
An Investment System Capable of Beating the Nasdaq
In other words, the Nasdaq is a great benchmark and it is much more difficult to beat than the S&P 500 which is the index that most professional fund managers try to beat. And here is the good bit. What we now know is that the system my clients and I use is capable of beating the Nasdaq and I am going to show you evidence of this in a moment, so you don’t have to take my word for it.
In my book Liquid Millionaire I tell readers about the very first fund that our screening tool (HIRE CAR™) found. It was called the AXA Framlington Japan Fund. HIRE CAR™ found it in 2003.
The AXA Framlington Japan Fund was the Number 1 performing fund in 2003, returning 91.05%. The Nasdaq that same year returned 50%.
Was it a fluke that we found and invested in the Number 1 performing fund of 2003? Was it luck?
HIRE CAR™; a Secret Formula for Finding Winning Funds
HIRE CAR™ has an almost uncanny way of picking up on its radar exactly where the big money is flowing.
So what funds did HIRE CAR™ uncover after 2003?
HIRE CAR™ helped us find AND also invest in the Number 1 and the Number 3 top performing funds over the 2003-2007 bull market.
The Number 1 performing fund of the 2003-2007 bull market is called the Invesco Perpetual Latin America Fund. It gained 587.8%, beating the Nasdaq by almost six times and averaging 47% per year over that 5 year period.
The Number 3 performing fund of the 2003-2007 bull market is called the Scottish Widows Latin America Fund. This one gained 492.3%, beating the Nasdaq by almost five times and averaging 42.7% per year over that 5 year period.
A Winning System in Good Times and Bad
This timing system also works quite well on the downside. For example, in 2004 the Nasdaq had a massive 19% correction (almost a new bear market) but HIRE CAR™ helped us make a one year gain of 32.5%.
Plus the system correctly predicted the end of the 2003-2007 bull market. It helped us to quickly move out of the market. This was when the market fell a nasty 24.7%. Anybody in the market over that time will have nursed some serious losses.
In the mean time, if you would like to find out more about how ISA investing can help you to achieve index beating returns please click here for a FREE sneak preview of my book Liquid Millionaire.
Happy reading!
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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