Unleash the Buying Frenzy in You

Unleash the Buying Frenzy in You

Today, I’m going to try and convince you to invest in the stock market. I make a very persuasive case, if I don’t say so myself.

But keep your wits about you. And promise me you’ll read right the way through…

Here’s what you should do today. Put all your money into stocks.

And the bank’s money too. Re-mortgage your house. Interest rates are pitiful compared to returns on the stock market. Just take a look at these epic gains in the ASX 200 stock market index…

Unprecedented boom in Aussie stocks

Source: Yahoo Finance

As you can see, the market is booming. Up 16% since 2006 — just over 1% a year on average!

Over the last five years it’s up 14%…

Over the last year it’s up less than 4%…

And from its highs in 2007, it’s still down 10%…

That’s like rocket fuel for your retirement. Can you afford to miss out on spectacular gains like this?

The rip roaring profits shouldn’t come as a surprise. How often have you been told that stock markets go up in the long run?

You can’t miss out on gains like this

Given Aussie school kids were forced to learn Japanese for so many years, let’s take a look at Japan’s stock market. Stocks there have soared in my lifetime…

Source: Yahoo Finance

The Nikkei 225 is up an impressive -44% since 1989. Buy and hold delivered for the Japanese. Why shouldn’t it deliver for you?

Then there’s Europe, where the uptrend in the stock market is also clearly visible going back to the creation of the euro in 1999…

Unprecedented boom in Aussie stocks

Source: Yahoo Finance

Just look at that bull market over time. Epic gains. Impressive stuff. No wonder the French are out celebrating in the streets every Saturday, instead of working their second jobs.

How can you not be overinvested in stocks after performances like these around the world?

What about America? If you’d bought the original stocks in America’s S&P 500 index and held onto them, you’d be rich by now.

Although I couldn’t find the data on how rich, because none of those companies managed to stay in the S&P index. They fell out…

Right now, investing in Asian stocks is especially promising. And it’s no surprise why. Just look at the performance of Asian stock market indices and funds. Like the MSCI AC Asia ex Japan Index. Or the iShares All Country Asia ex Japan index.

What does ‘ex Japan’ mean, I hear you ask. Well, they took the Japanese stock market out of the calculation to show you how well Asian markets perform over time…

It’s a bit like all the gold medals Australia won in relay races at the Olympics, ex the slow guys…

Proof stocks go up

I apologise for the sarcasm. Well, not really. I’m a little worked up about all this. About the blatant lies and absurd analysis of the financial industry. Used car salesmen make more sense.

I’m based in London these days. At the centre of the lies and fraud industry, also known as finance. You should see the rubbish advertised in windows and on billboards here.

My favourite example can be found a few minutes from the office. It’s the chart of a pension fund’s performance. The line rises dramatically over time. So you should invest.

What they don’t mention is that the increase is due to ongoing contributions, not investment gains…

Anyway, here’s the truth, as I see it.

Stocks don’t just magically go up in the long run. Stocks haven’t been going up much, or at all, in great big chunks of the investment world.

And even where they have, the buy and hold strategy is a delusion. Because stock market indices only measure successful stocks. They simply exclude the unsuccessful ones.

Solutions…that actually work too

I wonder how many years of poor stock market performance it would take for financial pundits to realise they’re wrong. And stop promoting their services as a retirement plan.

I just realised that’s a stupid question…it’s never going to happen. Especially now that the governments of the world are tricking people into investing in stocks via government policies like Superannuation.

But people might stop believing in the lies. Like they did in Japan. Eventually, after stocks crashed and never recovered.

Speaking of which, how does anyone let finance professionals simply take Japan out of the equation while proving stock markets go up in Asia…?

If I could simply exclude the losses on my portfolio, I might actually invest in the stock market! And it might actually perform as we’re all promised then too…the 8% a year gains we keep hearing about could be true if you simply take out the stocks that went down. That’s how the indices like the ASX 200 work.

If you want to believe the investment industry’s lies, be my guest. Buy an index fund. Hold the companies that have already peaked and are waiting to decline. Or the companies that are a bubble and will crash out of the index.

But at Agora Financial Australia, we have other ideas. Because you need solutions that actually work. If you want to retire.

For many years at Agora, our favourite pick has been gold. It must be very embarrassing for the finance industry that a lump of metal outperformed the mighty ASX 200 — Australia’s best companies…

But it did:

Source: Goldprice.org

So what are Agora Financial Australia’s editors suggesting you invest in these days?

Find out here.

Until next time,

Nick Hubble Signature

Nick Hubble,
For The Daily Reckoning Australia