Sometimes in life, you can’t help but make money…
If you were a real estate broker in 2006, you couldn’t help but make money… Crawl out of bed, answer the phone, and poof! There’s another quick big commission on the other end of the line.
If you were a day-trader in 1999, you couldn’t help but make money… Crawl out of bed, turn your computer on, buy just about anything, and poof! You end the day richer than you started.
One of the best money-making lessons I’ve learned in life is this…
There are times when you’ll make a fortune from simply existing – just being in the right place at the right time (like real estate in ’06 or the dot-coms in ’99).
And there are other times in life when, no matter hard you work, no matter what you do, you won’t make any money. You’re doing the wrong thing at the wrong time (like real estate and the dot-coms after they busted).
[ad#Google Adsense 336×280-IA]The first key is to recognize those good moments – the moments when you can’t help but make money – and capitalize on them.
The second key is to KNOW that those moments WILL end. Know that day-trading, or house flipping, or whatever-is-next-ing… it won’t last forever.
I was fortunate to learn this lesson early in my career by getting my butt kicked…
When I was 22, I started out as an international stockbroker. Within a few months, I was making more money than I ever imagined I would. The phones were ringing nonstop.
It was one of those good moments I’m talking about… I couldn’t help but make money. But I wasn’t smart enough to recognize it as a “good moment” yet.
After a couple months, the phones stopped ringing… The Hong Kong stock market fell something like 25% in two months. My income fell 90%. To make up the income, I was working harder than ever. The brutal reality was, nobody was interested in foreign stocks anymore. I wasn’t making enough to cover school and rent, much less food.
There was nothing I could do to fix it. Lesson learned the hard way… Make hay while the sun is shining.
So far, 2011 has been one of those times in the markets where, no matter what you do, you’re not going to make any money…
Stocks are down. Commodities are down. Real estate is down. Gold is up… but nothing to write home about. Heck, if you’d simply moved to cash and gone sailing for the year, you’d probably have done better.
But times are about to change.
Back in March 2009, people thought the world was coming to an end. Just about all investments bottomed out in price. And no matter what investments you bought in March 2009, chances are, you doubled your money within two years.
I believe we’re fast approaching a moment like March 2009, where no matter what you do, you’ll make money.
Many major stocks around the world haven’t been this cheap in a generation (except for the bottom in March 2009). Commodities are now cheap. Real estate is an extraordinary value. I wouldn’t be surprised to see many different assets double within two years after this market bottoms.
Sometimes, no matter what you do, you can’t make money… You’re doing the wrong thing at the wrong time. You might as well be doing nothing, because what you’re doing isn’t going to work.
And sometimes, you can’t help but make money… Throw a dart at a list of stocks and commodities, buy what the dart lands on, and you’ll double your money in two years.
We’re getting close to one of those times.
I will let you know here in DailyWealth when the time is here…
Good investing,
— Steve Sjuggerud
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Source: Daily Wealth