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Liquid Millionaire - isaco

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Stephen Sutherland<br />

of damage would probably cause some serious fi nancial and emotional<br />

pain.<br />

As a reminder, an 80% loss on your portfolio needs a 400% move to the<br />

upside just to get back even.<br />

How long would that take?<br />

Awareness Can Make You Rich<br />

When the market takes a heavy fall, investors who do not know how<br />

the market works will blame either the fund manager or their advisers<br />

for their losses. But what they really should be doing is noticing and<br />

understanding the link between their fund value dropping and the<br />

market heading downwards.<br />

You see, most investors do not know that three out of four stocks will<br />

always move in the same direction as the market. If they realised this<br />

basic law of how the market works, they would be able to switch their<br />

thinking from blaming to learning. And if they did learn how the market<br />

works, they’d then be able to act swiftly when the market was showing<br />

signs that it was unhealthy and quickly switch into the safety of cash to<br />

help protect and preserve their hard earned money.<br />

Know More about How the Market<br />

Works Than 95% of IFA’s<br />

Okay, with what you have just learned, you now know more about<br />

how the market works than 95% of accountants, bank managers, stock<br />

brokers, fi nancial advisers and stock market investors.<br />

Th at is why so many people fi nd the information in this book so valuable,<br />

especially when they use it to profi t.<br />

But does reading the market in this way really work?<br />

144

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