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When I was considering the question of whether or not rate hikes mattered, I realized something even more profoundly simple.
Nothing actually matters in the financial markets - until it does.
I have seen stocks shake off rate hikes, wars, New England Patriots Super Bowl victories, ridiculous fiscal policies, and any other sort of calamity before calmly moving higher. I have also seen markets that collapse on fears of currency moves, human error, and stupidity (the most common cause of market collapses).
We'll never know what the market is going to say, but once it does speak, there are tools you can use to decipher its message.
Personally, I prefer the toolkit outlined in part I: buying assets trading far below their fair value, waiting until they rise back to that fair value or higher, and selling them for a huge profit.
However, I know that while I may be a smart guy, I'm definitely not the smartest guy participating in the markets. I have my own investing philosophy that's worked well for decades, but I'm certainly not above freely stealing other ideas from other bright investors if those ideas make me taller, better-looking, or wealthier.
With that in mind, today I'll show you two ways to hear what the market is saying, to sidestep the worst market conditions, and to generate huge windfalls as everyone else runs for the hills.
And these two methods happen to have been developed by the unlikeliest of investors - a California surfer and a former Marine...
About the Author
Tim Melvin is an unlikely investment expert by any measure. Raised in the "projects" of Baltimore by a single mother, he never attended college and started out as a door-to-door vacuum salesman. But he knew the real money was in the stock market, so he set sights on investing - and by sheer force of determination, he eventually became a financial advisor to millionaires. Today, after 30 years of managing money for some of the wealthiest people in the world, he draws on his experience to help investors find "unreasonably good" bargain stocks, multiply profits, and build their nest eggs. Tim tirelessly works to find overlooked "hidden gems" in the stock market, drawing on the research of legendary investors like Benjamin Graham, Walter Schloss, and Marty Whitman. He has written and lectured extensively on the markets, with work appearing on Benzinga, Real Money, Daily Speculations, and more. He has published several books in the "Little Book of" Investment Series and a "Junior Chamber Course" geared towards young adults that teaches Graham's principles and techniques to a new generation of investors. Today, he serves as the Special Situations Strategist at Money Morning and the editor of Peak Yield Investor.
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