Liquid Millionaire - isaco

Stephen Sutherland
If the market’s uptrend is strong, funds are also going to be strong. For
example in 1999, the Nasdaq went up 86% in one year and this was its
best year’s performance in its entire history. 55 In that very same year,
investment funds were moving up 100%, 200%, 300% and even 400%
in just one year. 56
Why?
Well, if you have started to put the investment puzzle together, you will
have realised that funds were making huge gains because the market was
also making huge gains. In other words, it was in an extremely strong
uptrend. If we move to another year and compare 1999 with 2003, you
will start to see the reason why market strength plays an essential role
in determining how much money you are likely to make in any given
period of time.
You see, in 2003 the Nasdaq went up 50%. 57 Th is is still classed as a good
year but it was clearly not as strong as 1999 when it went up 86%. In
2003, the top performing fund was a fund I mentioned earlier, the AXA
Framlington Japan Fund. It went up 91.05% which is a great return but
it was clearly not as strong as the best performing funds back in 1999.
The All Important Link
Can you now see the link between the fund you buy, the market direction
and the market’s strength?
Good.
Can you also see that timing your buying will also play an essential role
in how much money you make?
I am assuming at this point that you are starting to see the all important
connection between the four parts that make up the performance
quadrant. Because you are still reading this, it tells me that you are
probably a person who is prepared to be patient when the market is
heading sideways or downwards. Th at is a good sign.
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