I have come to the conclusion that to make real money an Investor must stick to what Is trending.
This I would apply to shares, property, farming, and most other business Investments. This leaves the question of when to time your entry. Most trends only last long enough for the smart people to sell to the dummies who get caught at the top of the market. The Idea Is to be first In and out before the herd realize Its on Its way down.
I always think of It as the hand of a clock, climb aboard at half past and out at five to the hour. The property boom we are having at the moment began about three years ago, Investors In that or even only home owners have Increased there wealth more so than share Investors. The average house In Auckland lets say Is $350000. To someone that was smart enough to buy It on a $50000 deposit with a $300000 loan at 8pc. If they were unlucky and the house Increased at the national average per annum of 14pc all that would mean was they were getting 6pc on $300000 of someone elses money to the value of the loan plus 14pc on there own money. The smart Investor will realise It Is more profitable to get 6pc on some one elses money than 14pc on your own. The advantage of buying at the bottom Is If you are mistaken and carefull not much gets lost.
The average share Investor (market value plus dividends) was left way behind In comparison to the property Investor.
What comes next? Is my question to the forum.
In asking the question I would like to think I can reinforce my Ideas of what I think with what Input other Investors have of the situation.
The question Is what Is going to trend next?
cheers macdunk.
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