Last month, we compared a long-term market trend to the conveyor belt on an excavator. As long as the stones and dirt remain on the belt, they continue to rise. But when they reach the end of that support, they fall. Not because the machine necessarily failed, but because the [...]
Over the past five articles, we followed more than a century of market history in search of one recurring warning–something the major declines had in common before the greatest damage was done. Time and again, that warning came from the Blue Line. But recognizing a historical pattern is only useful [...]
Most investors have heard the old investment saying: Buy Low, Sell High. It sounds simple. Most investors would probably say they believe it. So why do so few investors do it? Over the past four months, we’ve examined four of the five largest stock market declines of the [...]
At the conclusion of Part 3 of this series I shared Warren Buffett’s two rules: The first rule of an investment is don’t lose. And the second rule of an investment is don’t forget the first rule. And that’s all the rules there are. I believe every investor [...]
In Part 2 of this series I posed a simple yet profound question: Can investing decisions really be this simple? I believe the answer is a definitive yes. To explain why, let me take you back to a childhood activity many of us remember–Color by Number. As children, [...]
