Wall Street would have you believe that stock market investing is like hunting; hunting for mispriced stocks (stock picking), getting out when the prey turns nasty (market timing), and relying on a guide (track record investing). Nobel Prize winning financial scientists strongly disagree with Wall Street’s hunting strategy. Instead, their decades of research prove that stock market investing is more like farming.
In today’s lightning fast, computer intensive global market the prices of these investments at any given time are fair and accurate reflections of their value. The market works extremely well in gathering all known information of every investment and the market rapidly and efficiently reflects all known information in the price of any given investment. Therefore, research shows, any attempt to identify stock prices that are “wrong” is a very expensive and ultimately futile exercise.
Wall Street would have you believe that somehow their research gurus know better than the market what the “right” price is for a given stock and that they can act fast enough to take advantage of the market’s inefficiency in pricing. If that is so, why does Wall Street spend billions of advertising dollars to attract your money? Why don’t they just get filthy rich by investing their own money in these supposedly mispriced stocks they claim to be able to identify? It makes one wonder at the truth of their claims to be able to consistently identify mispriced stocks, doesn’t it?
The globe is populated with thousands of public stock companies. Some are small, some big, some are large growth companies, some are lower price (value), some are in the middle. Bonds run from blue chip to junk Instead of thinking of each individual investment as potential prey for sharp eyed stock pickers, consider the global stock market in its entirety to be a farm with each stock being just one of thousands of “plants” in the global stock field. The Retirement Money Machine is designed to harvest all of the returns from all of the thousands of stocks in the global market. Doing so has you capturing what is called the global market capital rate of return. Capturing this global rate of return annually will result in a very successful long term investing experience.
Wall Street gambles and speculates with your money in a handful of stocks which may or may not be around in the future. The Retirement Money Machine relies on the long term survival of global commerce to power your financial future.
