The last eight weeks have been nothing short of exhilarating, with the Dow closing a mere 25 points away from 20,000 last week after 17 record closes and an 8% run that's added an estimated $1.8 trillion to investors' wallets.
"We're running out of things that can trip us up," noted Wunderlich Securities Chief Investment Strategist, Art Hogan in remarks made to CNBC.
It's critical that you get this "right" because the risks of being wrong couldn't be more costly.
You could more than triple your money with what I'm about to tell you…
Pad Your Portfolio by 233%
Let me start off with a warning, though.
What I am about to share with you may make you extremely uncomfortable. In fact, I'm hesitant to bring it up because it could easily be taken out of context.
But I am going to do so anyway for one simple reason – if you understand why Wall Street doesn't talk about what we've going to cover today, then you'll be perfectly positioned to understand the implications associated with what I want you to do next – and the tactics you'll need to succeed.
Here's what you need to know about the tactic that may already be costing you 233% returns. Maybe a lot more.
Brain-Damaged Investors Make Better Decisions
Nearly 10 years ago, I came across a study in Psychological Science that was as profound as it was politically incorrect, at least on the surface, anyway.
The implications are pretty striking so you'd think Wall Street would have been all over it but, sadly, they're not and won't ever be. In fact, the only time I've ever seen it mentioned in the years since was by another fiercely independent financial analyst like myself, Ric Edelman, CEO of Edelman Financial.
Here's what it says.
Researchers at three major universities – Stanford, Carnegie Mellon, and the University of Iowa – published findings showing that brain-damaged individuals made better investment decisions than the rest of us.
To be precise, what they studied was the impact of injuries that prevented the brains of the injured from processing emotional stimuli and, by implication, responses to those specific inputs.
Researchers found that when they compared the findings to folks with no brain damage, the "injured" individuals made significantly better investment decisions.
That's because the human brain is wired to evaluate economic and investing information using connections and pathways that are closely linked to emotional inputs. You'd think this kind of decision-making would involve logical brain pathways, but that's not true.
This is why making decisions with your money can be very challenging, especially when the markets are uncertain and the investing landscape emotionally charged like it is right now. Because you are taking what should be a logical decision and using emotional receptors to make it.
It's also why Wall Street wants you to believe money is complicated and why their ads are so slick. Unlik…
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.