Jan 01, 2009

Looking Ahead

Andrew Mickey, Q1 Publishing

This is the time of year when the world looks back. We get inundated with the Top 10 of practically everything. Sports, music, news, people – everything.

Now, more than ever, it’s time to look ahead. The next year promises to be more exciting than ever. And the opportunistic few who are willing to make it through all this will be well rewarded.

Right now, it seems like nothing could go right next year. The economy is worsening, states and local governments will be ratcheting up taxes, and will likely see the biggest bailout yet.

There’s not much to get excited about. But if you look hard enough, there are some positive signs out there. I was at the bookstore the other day and another good sign caught my eye.

You see, everywhere you turn the gloom and doomers are selling pessimism. And the perpetually money-losing herd is lapping it up. The top-selling investment books on Amazon.com’s bestseller list are:

-          The Return of Depression Economics and the Crisis of 2008

-          Crash Proof: How to Profit From the Coming Economic Collapse

-          The Little Book of Bull Moves in Bear Markets: How to Keep Your Portfolio Up When the Market is Down

Crisis, crash, and bear market are getting all the attention.  That is making me extremely positive.

Remember the tech bubble? The top selling books were all about the “new” economy and how the Internet was going to change our lives overnight. “Dow 36,000” was one of the best-selling books of all. Wall Street’s rallying cry was “Get in now, or you’ll never get in.”

Of course, history teaches us a different lesson. The herd buys what’s hot. Right now, crisis, crash, and bear markets are what the herd is focusing on. They’re preparing for the big crash. But when everyone is expecting something, it rarely happens.

Right now, I’m working away on what I call the “Trade of the Year.” It offers the rare combination of very limited downside (practically none at all, really) and unlimited upside. To me that’s the only way to invest and trade.

So I look forward to finding the truly great opportunities out there in the year ahead and would like to thank you for coming along for the ride.

Good investing and a Happy New Year,

Andrew Mickey
Chief Investment Strategist, Q1 Publishing