Liquid Millionaire - isaco

Stephen Sutherland
Direction
Th e third part of the performance quadrant that will determine how
much money you will make in any given period of time is direction. When
I say direction I mean market direction. In Chapter 5, you discover a key
fundamental fact about how the stock market really works. But here is
a quick taster:
Th ree out of every four stocks (and investment funds) move in the same
direction as the market.
Th at tells you that the performance of the funds you choose throughout
your investing career will be directly linked to the market’s direction.
If the market is trending up, three out of every four funds will move up.
And that means if the market is trending down, funds are going to move
down.
And if the market is trending sideways they are going to move in which
direction?
Yes, you are correct– sideways.
Collectively, this indicates that if a client decided to sign up for a multi
year shadow investing package 54 –and the market over the next 12-24
months went down or sideways–how much money is this person likely
to make?
If you said nothing or very little, you would be right on the money.
And this is just one of the things that are pointed out to the potential
client when contemplating coming on board. I always explain that the
system we use to make these greater than average tax-free returns needs
patience.
Why Cursing the Market Gets You Nowhere
It is impossible to will the market upwards. And if it does not go up,
funds are not going to go up either. But the good news is that, as you
saw on the chart in the introduction, since the stock markets began in
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