The Equity Boom


Last Friday's message outlined that an equity recovery could be on its way. Catching the trend of the market is one (though very hard and risky) way to increase your capital.

Another way to enhance capital is to pick shares you believe in. This may be harder, but often works better. A way to do this is outlined in a previous message at http://www.garyascott.com/archives/2001/07/28/333/

The proof that this works? In the last year I have recommended only two shares. Last year I recommended Jyske shares and invested myself last August when Merri and I were there in Copenhagen. Today those shares are at an all time high just 8 months later. This is a 16.7% rise.

Last month I recommended shares in Maersk. They were then 53,000 kroner per share. They immediately rose to 58,000 kroner, for an immediate 13% gain.

This fast price rise….by the way proves nothing. Tomorrow either of the shares could fall. The point is that I recommended each for the long term based around PIEC investing principles. For more information on PIEC, go to http://www.garyascott.com/archives/2001/07/28/333/

The PIEC formula (marrying the investments to your personal wants, needs, desires and abilities) adds comfort in the investing process, so had these two shares fallen, I would still be comfortable with having made the decision. This comfort is vital to successful investing because it helps us stick to our decisions and think long term rather than be blown about by the winds of short term market shifts.

Until next message may all your investing be good.

Gary


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