At the Stock Market Companion, we are strong advocates of individual investors learning to time the market.  Why?  Because it’s proven that 9 out of 10 stocks move with the overall market and when they move, some can move big!

A typical growth stock will move 2x to 4x the move of the underlying market in a given period of time.  Here’s a quick example – The NASDAQ confirmed it’s intent to move higher off the March 2009 market bottom on 3/12/2009.  On that day, the NASDAQ closed at 1426.10.  Fast-forward a little over a year to the NASDAQ’s 4/23/2010 close of 2530.15, and the percent increase off the March 2009 “confirmation day” was approximately +77%.  During that same period of time, Apple Inc. rose approximately 181%!  That’s 2.35 times the same move in the underlying market – in this case the NASDAQ.  That’s what we call “multiplication”.

Of course this idea is vigorously contested by others in the financial services industry, primarily because they want you to believe that you need them to manage your money.  They will tell you that you can’t time the market.  If that doesn’t stop you from learning to invest some on your own, then they tell you that you need their help to diversify your holdings.  Finally, if that doesn’t discourage you enough to leave your money in their hands, then they play on your heart strings by showing you advertisements showing people making the “wise decision” of using their time to play with their grandchildren and leaving their financial worries to the “professionals”.

Twice in a decade, many investors who have followed this idea of not being able to time the market – heavily promoted and advertised by the financial service community –  have lost a lot of money.

At the Stock Market Companion we teach that individual investors can learn to successfully manage and grow a portion of their money on their own.

A little over two weeks ago, the U.S. Federal Reserve announced that they would begin purchasing another $600 billion in long term U.S. Treasuries.  Initially, the stock market responded very favorably.  BUT the U.S. dollar – instead of sinking like a rock – began to climb and overseas disappointment with the Federal Reserve’s “go-it-alone” policy was also rising.

At that point, when the stock market began to feel a bit wobbly at the top, at the Stock Market Companion we took our profits and headed to the sidelines and immediately informed our subscribers of our decision to do so.

We’ve now been out of the market for a little over two weeks.  Is it really necessary to be exposed to the most liquid market in the world, at a time when significant nations in Europe are weighing out their options for a loan with their central bank and uncertainty is quickly rising?  We think not.  That’s why we “time the market”.

Grow your money – on your own – inside your retirement accounts (IRA, Roth IRA… ) or in your traditional brokerage account… Follow how we apply our successful “Story-Stock Investing” process to grow our own money.  You can decide on your own whether to do the same or simply watch and learn. It takes just a few minutes a day.

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Please remember – at the Stock Market Companion we do not and cannot give individual investment advice. According to the State of Washington RCW21.20.005 the Stock Market Companion is not a Registered Financial Advisor and we do not render any advice on the basis of the specific investment situation of a particular individual. This information is for a wide readership and is not intended for any particular individual,  and under no circumstances should our Market Update or Watchlist be considered an investment recommendation or plan for any specific individual.  By accessing this material, you agree that the Stock Market Companion will not be held liable for any actions taken by a subscriber or other parties.  Please seek the counsel of a broker or other licensed investment professional for accurate pricing and concerning the suitability of all investments that you may be considering. Disclosure : You understand that the Stock Market Companion holds positions in the above mentioned securities.  Based on market related or personal events these positions may change without notice.