{"id":106897,"date":"2017-06-05T10:46:24","date_gmt":"2017-06-05T14:46:24","guid":{"rendered":"http:\/\/countingpips.com\/?p=106897"},"modified":"2017-06-05T06:46:52","modified_gmt":"2017-06-05T10:46:52","slug":"fight-or-flight-investors-which-type-are-you","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/06\/fight-or-flight-investors-which-type-are-you\/","title":{"rendered":"Fight or Flight Investors \u2013 Which Type Are You?"},"content":{"rendered":"
June 5, 2017<\/div>
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By WallStreetDaily.com<\/u><\/a> \"According<\/p>\n

\"LouisToday\u2019s issue of Wall Street Daily <\/i>comes from hedge fund manager, entrepreneur and venture capitalist James Altucher.<\/p>\n

James has written 18 books \u2014 including what USA Today<\/i> calls \u201cone of the 12 best business books of all time.\u201d<\/p>\n

He\u2019s been hired to run a $33 million hedge fund and a $125 million venture capital firm.<\/p>\n

And he\u2019s turned a personal $2,000 investment into a profit of more than $10 million\u2026<\/p>\n

His article below addresses three critical things you should always look for while investing.<\/p>

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Ahead of the tape,<\/p>\n

Louis Basenese
\nChief Investment Strategist, Wall Street Daily<\/em><\/p>\n

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Fight-or-Flight Investing<\/h2>\n

\"JamesIf you\u2019ve ever followed anything I\u2019ve written or interviews I\u2019ve done, you\u2019ve probably heard me say that the stock market is a scam.<\/p>\n

And that\u2019s because, quite frankly, it largely is.<\/p>\n

So many public companies manipulate their numbers. So many mutual funds and stockbrokers have a bunch of hidden fees.<\/p>\n

All of these investment news sources preach that the stock market is going to collapse, or that you should buy this or that stock that\u2019s going to get you 6,000% gains.<\/p>\n

Don\u2019t fall for any of it. It\u2019s all a scam.<\/p>\n

But that doesn\u2019t mean you can\u2019t make money in the stock market.<\/p>\n

In my years of investing, I\u2019ve probably tried every strategy there is out there. There are only about three that I really care about. This is one of them.<\/p>\n

In fact, if I were to die tomorrow, this is the strategy I would tell my children to use to invest the money from my life insurance policy.<\/p>\n

And the best part is you\u2019ll never hear any investors talk about this strategy, because it goes against everything they believe about investing.<\/p>\n

So here it is. This is one of the most important strategies, if not THE most important, that I could give you. This is what you should always look for when investing.<\/p>\n

1) Find the irrational fear<\/h2>\n

In 2008, the oils markets were crashing and so everyone thought that Texas and California were about to declare bankruptcy. Everyone was talking about it on TV and in the news.<\/p>\n

They had no idea what they were talking about.<\/p>\n

It\u2019s not even legal for a state to declare bankruptcy; the Founding Fathers wrote it into the Constitution.<\/p>\n

The only way a state can even get out of paying back a debt is if first they fired every single public servant and every public school teacher, etc.<\/p>\n

I would go on CNBC and have these arguments with people. I\u2019d go on and say that it wasn\u2019t going to happen. That it wasn\u2019t ALLOWED to happen.<\/p>\n

But still these guys on CNBC \u2014 professional pundits and investors! \u2014 could not wrap their minds around this.<\/p>\n

The point is there\u2019s always an irrational fear somewhere in the market. It\u2019s the financial version of fight or flight.<\/p>\n

Except \u2014 and this is the key \u2014 investors ALWAYS run.<\/p>\n

Fight that fear and you\u2019ll be surrounded by solid opportunities at a huge discount.<\/p>\n

Which brings me to\u2026<\/p>\n

2) Find assets or stocks that are discounted because of the fear<\/h2>\n

Especially when there\u2019s no actual risk.<\/p>\n

In 2008, during that time that everyone was afraid Texas was going to go bankrupt because of the crashing oil market, I found a bunch of bonds issued by Texas towns and counties that were trading at a huge discount. They didn\u2019t even rely on the oil industry for most of their revenue. They were just being caught up in the fear.<\/p>\n

So not only was there this irrational fear that Texas towns would go bankrupt, but it was temporarily making these specific assets that had nothing to do with this story way cheaper than they should have been.<\/p>\n

It presented an incredible opportunity to buy.<\/p>\n

That\u2019s exactly the kind of thing I\u2019m looking for. That\u2019s exactly what I\u2019m always researching. That\u2019s what I would recommend my kids do, and that\u2019s where I think people should put their money.<\/p>\n

3) Only put your money in investments where the price is at a huge discount to the underlying assets<\/h2>\n

In other words, if a company had $100 worth of assets and you could buy it for $70, that\u2019s a great investment.<\/p>\n

Let\u2019s look at those Texas bonds again. Not only were they trading at a major discount, but they were also paying a huge tax advantage yield.<\/p>\n

I want my investments to be discounted below the value of the assets they own. I want that extra margin of safety. It\u2019s a double discount on the underlying assets. I don\u2019t pay full price for my investments.<\/p>\n

That\u2019s how people get rich. That\u2019s my favorite way of investing. And I\u2019m not alone. The richest investors in the world do this as well. Bill Gates. Warren Buffett. Carl Icahn. George Soros. They all do this.<\/p>\n

But you don\u2019t have to be a millionaire or billionaire, or even wealthy, to make this strategy work for you. In fact, it\u2019s one of the safest strategies I know.<\/p>\n

\u2013 James Altucher<\/p>\n

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Originally posted on jamesaltucher.com<\/a><\/p>\n

The post Fight or Flight Investors \u2013 Which Type Are You?<\/a> appeared first on Wall Street Daily<\/a>.<\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By WallStreetDaily.com Today\u2019s issue of Wall Street Daily comes from hedge fund manager, entrepreneur and venture capitalist James Altucher. James has written 18 books \u2014 including what USA Today calls \u201cone of the 12 best business books of all time.\u201d He\u2019s been hired to run a $33 million hedge fund and a $125 million venture […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-106897","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/106897","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=106897"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/106897\/revisions"}],"predecessor-version":[{"id":106904,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/106897\/revisions\/106904"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=106897"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=106897"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=106897"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}