How To Invest

In addition, Pat thinks then beginner investors should cultivate two important qualities: a healthy sense of skepticism and patience.

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Investors should approach all investments with a healthy sense of skepticism. This can help keep you out of fraudulent stocks that masquerade as high-quality stocks. It will also keep you out of legally operated, but poorly managed, companies that promise more than they can possibly deliver.

If you are a new investor, you should also realize that losing patience can cause you to sell your best choices right before a big rise. All too often, investors buy a promising stock just as it enters a period of price stagnation. Even the best-performing stocks run into these unpredictable phases from time to time. They move mainly sideways in a wide range for months or years before their next big rise begins. (Stock brokers often refer to these stocks as “dead money.”)

If you lack patience, you run a big risk of selling your best choices in the midst of one of these phases, prior to the next big move upward. If you lose patience and sell, you are particularly likely to do so in the low end of the trading range, when stock prices have weakened and confidence in the stock has waned.

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How To Invest Library Archives
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Intel Corp., another of our tech recommendations, hit a high near $70 in January of this year....
Here’s an Excerpt from a recent issue of Advice for Inner Circle Pro Members:


“The sharp rise in stocks since March seems excessive to some. Stock prices are back up to their old highs, even though earnings remain well below past peaks.


Just remember…“A rising market climbs a wall of worry”


This is one of those rare stock-market slogans than makes sense and fits on a T-shirt....
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These days, many investors find they have lots of things to keep them awake at night.

The sharp rise in stocks since March seems excessive to some. Stock prices are back up to their old highs, even though earnings remain well below past peaks. Many investors feel we are in a “frothy” market where stocks run wild....
Here’s an excerpt from a recent issue of Advice for Inner Circle Pro Members:


“ETFs (Exchange-traded funds) may have a role to play in your portfolio. As with any investment, however, you need to approach them with a healthy sense of skepticism, if not an outright BS detector....
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