I go to the Money Show every year to visit with
friends who have booths and are speakers. Then
when folks are filing out of lectures I listen
to their comments on what I know the speaker has
The Money Show is for investors from all walks
of life; however, my guess is the median age is
close to 60. Those who go have accumulated a
nest egg and now are retired or very close to
retirement. They came to learn more about how to
make their money grow.
Last year there were 256 separate events not
counting what was given in the Exhibition Hall.
Almost without exception speakers were showing
how cash can accumulate faster if the listener
bought his product whether it was a mutual fund,
stock, bond, partnership or who knows what. Are
there that many money makers out there?
One speaker had an hour telling the market was
due to crash and the thing to do was buy long
term put options. He also said if you would not
do that to buy some government bonds which were
paying about 2 to 3%. The exit comments I heard
were pretty well summed up by one lady who said,
"Is he nuts. How can we live off 2%?"
When you are in a bear market the old saying
is, "He who loses the least is a winner". No,
you can't live on that small a return, but you
can lose large sums by trying to be invested at
all times. There have been many years in the
past where cash with no percent return beat the
heck out of the stock market.
Go back to 2000 and remember the NASDAQ lost 78%
of it value in 3 years. Since March 2000
investors in the 50 hottest-selling mutual funds
have lost an average of 42% according to the
Lipper Analyst. Fidelity Magellan, the largest
fund at that time remains a loser of 23% and
Janus, 4th largest, is down 45%.The Buy N
Holders have still not recovered their
If you had sold out near (I did not say at) the
top, say within about 10 or 15% your account
would have been pretty darn healthy when it
finally did start back up. You would not have
lost 30 to 40% or more of your hard-earned
money. That is what I refer to as a "reverse
If you had put a loss limit on your portfolio of
10% on each position and taken out just enough
to live on it probably would that have been less
than letting it stay invested in the market? You
can easily check that.
Putting 100% of your money in a money market
while the market is declining does not mean you
are not invested. You are invested ? in cash.
This protects your savings from huge losses that
can and do occur regularly in market cycles. I
have written about those 16-year cycles
The smartest investors set a limit from where
they bought from the highest price their equity
has reached as to where they will sell if it
starts going down. Usually 10% is the rule of
thumb, but it can be 5% or 20%. That is your
All investors must learn that cash is a position
or they are sure to lose their money.
Al Thomas' book, "If It Doesn't Go Up, Don't Buy
It!" has helped thousands of people make money
and keep their profits with his simple 2-step
method. Read the first chapter at
and discover why he's the man that Wall Street
does not want you to know.