Editor's Note: Lee Adler has more than 44 years of experience trading and investing, as you'll see. You're going to be hearing a lot more from him in the future, because he's taking our newest free research service, Sure Money, "big time" next week. You'll have the chance to join him, but for now, he's going to show you why these four little words just might be the most profitable recommendation you've ever had. Here's Lee...
"Don't fight the Fed" was a refrain I heard often from the old men in the customers' gallery at Walston & Co.'s Philadelphia, Penn., office back in the late 1960s. I was a teenager at the time and sat with them after class.
I tried to understand what these mysterious wise men meant as I watched the ticker tape crawl along, showing a trade from New York every few seconds...
"IBM...200s... GM...1000s... PRD...100s... XRX...10,000..."
The ticker would pause for a few moments, then more trades would come.
Some of these old men were known as "tape readers" or "tape traders." They saw patterns in the movements of the ticker and bought and sold stocks based on those patterns.
They made money, too, and plenty of it.
"Don't fight the tape. Don't fight the Fed. The trend is your friend," they said. I heard it so often, I couldn't stop it from constantly playing in my head.
I still can't, to this day.
Tags:The Fed
To get full access to all Money Morning content, click here
About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.
Disclaimer:© 2017 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.
The post This Moneymaking Mantra Works Through Boom and Bust appeared first on Money Morning - We Make Investing Profitable.