Buy and Hold Is Dead: How to Make Money and Control Risk in Any Market

Chapter 2. Keep It Simple, Sweetheart

The Investment Rate is logical, comprehendible, actionable, and it can work for us to help us protect our wealth and take advantage of longer-term trends throughout fluctuating cycles over time. I have already outlined its origin; now I will illustrate past application and prove its effectiveness. Advancing this tool is integral to understanding our proactive models because it plays an important role in all of them.

Interestingly, though, the simplicity of the model is sometimes overwhelming to new subscribers. Surprising as this may sound, most people want to complicate the already effective contrivance stemming from the Investment Rate, and that usually curbs the effectiveness of this leading indicator with unnecessary variables. Sometimes these observations are sound, and I am always willing to entertain derivations, but not until a person first shows a complete understanding of my current model. In fact, more often than not, those persons who started by questioning the model begin to embrace it after they understand it, too.

Therefore, before I proceed with further explanation, I always challenge my audience. Until they finish the first phase of this lesson, I challenge them to stop listening to the noise. If they can do this, they can also accept the Investment Rate for what it is and see forward applications with ease. With proven effectiveness in hand, I will take that same stand here. Stop listening to the noise surrounding the stock market ...