CHAPTER 2Economic Outlook

I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.



The first step toward building a winning portfolio strategy is not fundamental analysis or looking at charts but rather creating an economic picture for both the present and the future. This important step is so often forgotten but is very important in determining how you will diversify your portfolio. The goal is to look at where the market is headed, based on where it has been, and identify which sectors, industries, or technologies could rise based on current value.

Trying to predict the future trend of the market can be very difficult ...

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