Hello Readers,

Again, I was going to do my article on buying in November and go away in May to explain why the markets are going down now, but I will go back up shortly.

But one of the big questions I keep getting is why I am positive while all the experts and media say nothing but gloom and doom.

The simple reason is that I have the experience, and you know the old saying that those who do not remember the past will continue to make the same mistakes.

I learn from the past.

Study after study has proven that the experts do not predict the economy any better than random chance because they still fall back on the tendency of human nature– to forecast by projecting trends in the same primary direction they are already going.

This is shown in the above chart.

This is because, by nature, we tend to focus on present symptoms rather than the root causes. Unfortunately, this often leads us in the wrong direction. We also think in straight lines, although reality runs in cycles.

At the left end of the curve, the economy is level, so it is most natural to predict it will continue to do the same.

However, as growth shoots upward, these level predictions get left behind.

As the markets and real growth climb, traders and forecasters rarely can tell far in advance that a peak is near.

Towards the top of every significant economic boom, some leading experts say, ” We don’t need to have recessions anymore. The Federal Government has found ways to fine-tune our economy”. That’s when the warning bells should go off.

As humans, we’re reluctant to accept down cycles. So we become overly optimistic when things are going well. It follows that we are unwilling to accept negatives.

So when the economy starts to flatten out, the experts predict a ” soft landing.”

Remember the erroneous soft landing forecasts in 1989 and the” no recession” forecasts for 1990, just before we hit 11% inflation and 20% mortgages and the housing market crash in 1991?

A national association of economists agreed there would be no recession for one to three years. They even announced their consensus publicly. Then, a month later, we were into it. And soon, most economists and forecasters will think this recession is turning into a depression, just like now.

Making statements like” THINGS CAN ONLY GET WORSE.” are all over the news daily, depressing everyone and panicking investors into an emotional transaction rather than doing the research and planning.

To take advantage of everyone else’s mistakes. It is what Warren Buffett does, and we have done it for more than 20 years.

    Economic experts almost always miss the turning points when the economy either takes off in a boom or dives into a recession. The few who catch the highs and the lows are known as Contrarians.

Because  I started playing chess at age 8,  I learnt to think five moves ahead. My “connecting the dots Strategy” is the same.

If the player makes a particular move, I have already figured out how to defend or take advantage of his move because I figured out all his options.

So whatever the market throws at us, because of my 30 years plus experience. By researching and day trading, I understand every move the markets make and can adjust to them.

That is how we have averaged 20% per year for over 20 years.

The biggest thing I have learnt from every market downturn is that it is always followed by a slingshot that takes us back to where we were before the downturn, and then the positive momentum takes us up to new highs.

Finally, when we humans, at last, accept the negative, we tend to overreact with pessimism. We are reluctant to listen to the good news because so much has been bad for so long.

Then the Mass media will say, “America can no longer compete in the world economy.”

We need reliable, simple tools that counteract the human model and help us accurately forecast what will happen in the economy.

And we have been doing exactly that for over 20 years

ask for our free “connecting the dots ” strategy report so you can see the difference yourself. Then start using it to increase your income if you are on a fixed income or grow your portfolio to become financially secure.