How the Great “Populist” Hoax Can Cost You Your Retirement…
March 21, 2016
From Donald Trump to Ben Carson, populism is the new rage in America. That might work in politics. But when it comes to your family’s wealth and well-being, now is not the time to be suckered by outsiders…
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I’m happy to discuss my views on national politics and the coming presidential election with you. But that’s for another day.
Today, I want to address a different wave of “populism” sweeping the nation — one that could threaten the livelihoods of hardworking, well-intentioned Americans like us.
You can probably guess it has something to do with your wealth and investments. Especially if you recognize my name from “Making Money With Charles Payne,” the daily show I host on Fox Business.
I won’t deny it. I’m obsessed with your financial success. It pains me to think that you or your loved ones could fall victim to a trap that’s being set for independent minded U.S. investors.
I wasn’t born into some silver-spoon dynasty. I didn’t graduate from an elite prep school or even an Ivy League college. My father didn’t land me my first job on Wall Street or seed the equity research firm I now head up.
I climbed the Wall Street ladder from the bottom, one rung at a time. But this is important: I did cut my teeth on Wall Street. Where I had the privilege of working alongside some of the most knowledgeable investors on the planet.
I’m not ashamed to admit that. Quite the contrary…
Without exception, every truly great investor I’ve met in my 30-year career would proudly admit the same. From Warren Buffett to George Soros and the late John Templeton — to “outsiders” Louis Navellier and Hilary Kramer…
Every one of these successful investors has top-level professional experience in equity research, risk assessment, and asset management. It’s no coincidence that they have impressive long-term track records to show for it.
So why do I bring this up now? That’s a fair question and the answer is simple. Because I fear you may have been or soon will be offered some dubious — and potentially dangerous — advice.
So I hope I’m not overstepping here. But the stakes are high, so I’m willing to go out on a limb. Especially since I have a feeling that you and I are like-minded. We get our information from many of the same sources, after all…
We read the same newspapers… watch the same shows… and visit the same news and financial websites. In other words, we speak the same language. We also encounter the same pitches and “come-ons” from experts offering us advice.
By and large, I think that’s great. Being exposed to alternative voices and enjoying the freedom to choose who and what we want to associate with is what makes America far and away the greatest country on Earth.
At the same time, I’ve noticed a growing trend that I find frankly troubling. Specifically, the exploding number of solicitations I’m receiving offering personal investment advice from “experts” with dubious credentials.
This is especially disturbing when these so-called advisors come touting proprietary “systems” and strategies designed to help me earn outsized profits trading individual stocks, exchange-traded-funds (ETFs), or options.
I imagine you know what I’m talking about: The former NASA scientist who cracked the Wall Street Code. The software developer who identifies winning stock trades using arcane, multivariable algorithms…
Or worse, the medical doctor, neurobiologist, or behavioral psychologist applying his or her unquestioned, yet admittedly unrelated expertise to predicting the future course of the markets based on… well, heaven only knows what.
Listen, I read everything I can get my hands on. And I encourage you to do the same. This stuff can be fun. Who knows? One of these savants might one day offer a genuine breakthrough that has some real merit and potential.
I don’t even begrudge you spending a little money on a subscription if the fancy strikes you. It can be painful to waste money, but a few hundred dollars here and there probably won’t break you.
Just promise me you’ll think long and hard before committing any meaningful chunk of your family’s very important money to one of these “outsiders” and their revolutionary stock- or options-trading schemes.
That’s when tragedies happen. Some folks never recover. I’ve seen it with my own eyes. I bring this up today for two important reasons — one suspiciously “selfless” and the other a bit self-interested.
First, I hope you believe me when I say that your success is important to me. As a “representative” of Wall Street, it’s important to me that you have every opportunity to build and defend the wealth and security you deserve.
More importantly, as a fellow citizen who has worked hard to achieve a certain amount in life, I know how important and rewarding it is to grow and protect your hard-earned wealth — if not for yourself, then for your loved ones and heirs.
It’s why for the first time last year, I launched Smart Investing, my premier investment advisory — specifically designed to help individual investors get rich by harnessing the awesome power of the U.S. economy and global financial markets.
It’s also the first reason why I’m reaching out to you today. I know that must sound a little touchy-feely and you might be skeptical. But that’s okay. Once we get to know each other a little better, I think you’ll see that I’m sincere.
If you’ve caught my show on Fox Business or have sampled my work with individual investors at Smart Investing, you know that I am a major proponent of long-term, buy-and-hold equity investing.
I made my mark in the industry based on my knack for identifying disruptive, fundamentally sound, and well-managed U.S. and global companies — then buying them at attractive prices and holding on for the long-term.
Companies like Sara Lee, Johnson & Johnson, GEICO, Coca-Cola, Apple Computer, Microsoft, Nike, Wal-Mart, AOL, Disney, and Berkshire Hathaway — all of which minted untold millionaires.
Or more recently, Under Armour, Facebook, Amgen, Expedia.com, Intuitive Surgical, Starbucks, Amazon, Chipotle, Tesla, Google, and Netflix — which are doing so right now!
I’m on public record arguing that owning a growing stake in a small handful of your generation’s truly game-changing companies — and riding that investment to massive gains — is the one surefire way to get rich investing.
So it might surprise you to hear that I have a high regard for the unique benefits offered by shorter-term investing and “trading” strategies. Especially for those who don’t have the time or temperament required to ride out market volatility.
It might surprise you even more to know that my fully documented success as a short- and intermediate-term equity “trader” is what first attracted many of my most loyal clients to my independent equity research and money management firm.
It’s not for everybody. But for a meaningful subset of investors, prudently “trading around” your core positions can be a valuable and lucrative complement to a long-term buy-and-hold strategy — especially in volatile markets like this one.
Again, this more active approach is not for everyone. Some of my clients, for example, don’t like the extra time and energy it demands — particularly those who are reluctant to fully surrender the “reins” to my staff and me.
Others frankly fall in love with their stocks — and don’t feel comfortable taking small losses when the need arises and are sometimes uneasy “skimming” profits on a winning position at the risk of missing out on potential future gains.
Still others believe that buying great companies and locking them away for years is all you need to do to get truly rich investing. Believe me, I get it. For most investors, that one proven strategy truly is all you need.
The same can’t be said for every investor, however. Maybe, for example…
- You’re not sure you have the fortitude to stand pat as your portfolio balances fluctuate when markets sell off — dragging down the market’s best stocks in their wake.
- You want to be more nimble and better positioned to raise capital when markets get exuberant. So that you can deploy that capital to take advantage of unexpected bargains when markets inevitably sell off.
- You simply don’t have the five or 10 or even the 20 years it might take to fully realize the long-term growth potential of the world’s best companies.
Or maybe you just like the idea of “ringing the register” on a more regular basis — and frankly adding a little action and excitement to your long-term wealth-building strategy. If so, I’d love to hear from you.
This coming Thursday, March 24, 2016, I will reach out to a select group of investors like you who express an interest in a more nimble and potentially lucrative approach to protecting and building your wealth in this volatile market.
I have an unusual proposition I’d like you to consider — but I can only extend it to a very small number of investors.
Though please rest assured. The approach I want you to consider is a bit more active — dare I say aggressive — than the patient long-term investment approach my members love about Smart Investing…
But don’t expect to read about some magic system… proprietary algorithm… or sample “back-tested” model I magically discovered in my basement laboratory.
You’ll never hear such nonsense from me!
As active “traders,” we will systematically apply the same rigorous fundamental and time-proven technical analysis — and painstaking discipline — that have helped me consistently build fortunes for my high-net-worth clients for more than 30 years.
If that sounds like something you can use as we head deeper into a volatile 2016, please don’t wait when the time comes.
Whatever you decide. I hope you will give some thought to what we just discussed. “Amateurism” is on the rise in America. It might work in government where “common sense” has been sorely lacking. But trusting your money to “some guy with a website” is downright dangerous. There are no secrets to making money in the financial markets — growing your wealth safely in this volatile market requires experience, skill, hard work, and most of all discipline. Just as it did 30 years ago when I got into this business.