There's a monster lurking beneath the investment hedges today, and no one is talking about it. It is so stealthy and so big that it will ruin 90%+ of all portfolios.
What is it? You'd better sit down.
It's "conventional wisdom."
I admit, "conventional wisdom" isn't a single myth or risk. It's more like a category of many myths. But the point remains: If you're accepting what the financial pundits are telling you today, you are setting yourself up for tremendous financial pain.
Here is what I mean. Most investors would say the Fed controls the economy. Correct? They also believe earnings drive stock prices. They think news determines the market's path; that gold is a good hedge against economic volatility; and that diversification equals security. And here's the big one. They think that in the long run, say 10 -- 20 years, the stock market always goes up.
The problem: These "truths" are no more than assumptions. Further, they have been proven to be false, every one. Yet the experts keep declaring them as facts.
Relying on these false assumptions will leave you on the wrong side of big opportunities--and devastate your portfolio when the markets turn.
Here Is How Conventional Wisdom Will Kill Your Portfolio.
It has happened again and again. For example: Imagine the deadliest terrorist attack in U.S. history happened tomorrow. Would you short the stock market? What if North America suffered its biggest blackout ever? Or what if the president got shot? Just about any investor would assume these history-turning developments would send stock prices spiraling.
Any investor who followed conventional wisdom, that is.
Yet the market screamed higher in the weeks after 9/11. It screamed higher after the blackout of 2003. It even screamed higher after President John F. Kennedy was assassinated. Anyone who followed "conventional wisdom" and shorted the markets got crushed.
The same thing happens in reverse. For example, interest rates. Most people think that lower rates stimulate stocks and the economy. So, they buy stocks on rumors of rate drops. But what does history show? Does the assumed relationship actually work?
A new book, The Socionomic Theory of Finance, is a bold challenge to these widely accepted financial conventions. Thirteen years in the making, STF uses empirical historical studies to expose layers of erroneous thinking and to offer a new approach based on how the markets actually work. The book is jaw-dropping and, at times, an uncomfortable read. It was published only a year ago, yet it is already acclaimed by academics, practitioners and investors who realize that current conventional wisdom is broken and needs to be replaced.
YOU can start reading STF today, free, and judge for yourself.
YOU Can Do It
What if YOU became that rare investor who understands what really moves markets? Who is truly prepared? Who makes decisions based on a tested foundation and who survives and prospers in both good times and bad--and sleeps at night?
Sign up now (it only takes a few seconds). You'll get Chapter 1 of STF immediately, and we'll email you another eye-opening chapter in a few days, also free. There's absolutely no obligation.
Prepare to be surprised and challenged.
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Chapter 1 of STF