The markets are again flirting with all-time highs and many investors are understandably afraid that the bull market has just about run its course. Worse, they're selling out and heading for the sidelines, using even the slightest market drop as justification for their actions.
I can't think of a worse mistake, especially when you consider the alternative I'm about to share with you.
It's a Total Wealth Tactic that could turn every $10,000 invested into $252,600, and it's perfectly suited for today's complicated financial markets.
As always, I've got a few examples and stocks that can help you put what you learn today into action immediately.
How to Turn Three Decades of Losses into 2,426% Profits
Millions of investors lurch from investment to investment in a desperate search for the one stock that will turbocharge their returns. And, in doing so, they ruin their portfolios.
Stock selection, as it turns out, is only part of the mix.
If you want to earn the big bucks, you've got to make sure your money is working as consistently and efficiently as possible. What I mean by that is that you want to be making money with everything you own every day.
Profit Opportunity: This is your ticket to bigger and better returns… and it won't cost you a penny. What are you waiting for? Read more…
If you're moving from stock to stock, you may as well be playing roulette. The principle of Gamblers Ruin will ultimately bleed your wealth dry.
When I say consistently and efficiently, I'm talking about putting something place that will keep your money moving through thick and thin, that will keep you tapped into upside, and will ensure that you're constantly buying low and selling high.
The first step in this process is identifying undervalued stocks.
We talk about that a lot because that's the first step on the path to profits. You find something that's beaten down, yet still has a fortress-like balance sheet, strong sales, and growing revenue, and you buy it because it's tapped into an Unstoppable Trend.
In fact, I've just discovered such a stock – it's nearly doubled its customer base in the past year, and on Nov. 1, it's expected to announce an estimated 325% earnings growth – an unheard of number that I believe will send their shares skyrocketing.
We're just a few weeks away from this trigger date, so click here to find out how you can get all the details.
The second step is to keep your money moving by reinvesting it. That way you can capture the powerful upside bias inherent in today's financial markets… even in flat or down markets.
It's a lot easier to do than most investors think.
Let me prove it to you.
Imagine buying 100 shares of ABC at $100/share for a $10,000 initial investment. And that ABC has a dividend yield of 2.05%, which is the average yield offered by companies on the S&P 500 today.
Now, imagine you resolved to re-invest those dividends, quarter after quarter.
A year down the road you would have earned slightly more than $205 back in dividends (it's slightly more than 2.05% because of the miniscule short-term effect of compounding quarterly rather than all at once, yearly). I know that doesn't sound very inspiring, but hang with me for a minute.
Coming into year two, you've got approximately $10,205 invested, and a 2.05% yield that translates to $10,414. Year three, $10,627. Year four brings $10,845 in capital working for you. By year five, dividend reinvestment would have allowed you to purchase $11,067 in company stock, totaling more than 11% in appreciation.
About the Author
Keith Fitz-Gerald has been the Chief Investment Strategist for the Money Morning team since 2007. He's a seasoned market analyst with decades of experience, and a highly accurate track record. Keith regularly travels the world in search of investment opportunities others don't yet see or understand. In addition to heading The Money Map Report, Keith runs High Velocity Profits, which aims to get in, target gains, and get out clean, and he's also the founding editor of Straight Line Profits, a service devoted to revealing the "dark side" of Wall Street... In his weekly Total Wealth, Keith has broken down his 30-plus years of success into three parts: Trends, Risk Assessment, and Tactics – meaning the exact techniques for making money. Sign up is free at totalwealthresearch.com.