Making Great Investment Profits in 2012, No Thanks to the ‘Analysts’

In my best-selling investment books and Wealth Academy seminars, I often tell my students that nobody (including myself) can predict the direction of the stock market. As a savvy investor, you should never blindly listen to the advice of experts. Instead, you should always invest based on your own research and analysis.

In December 2011, it was clear from my analysis that many stocks were highly undervalued and it was the right time to invest once the stock market reversed into a clear uptrend (as indicated by the moving average signals I teach). As a result, I started investing in many US and Singapore stocks and adding to some of my existing positions.

However many people I know did not dare to invest even though the stock market was clearly showing a clear uptrend signal. Why? Simply because they had read analyst reports from investment experts in well-known financial institutions that predicted that the first half of 2012 will still be bearish and highly volatile. There would only be a possible rally in stock prices in the second half of 2012 they said.

Well, as usual, the ‘Experts’ got it wrong again. From the beginning of January, stocks market started rallying and have made their greatest gains in the last 18 years! Now that stocks have staged their best January performance since 1997, these experts have changed their tune and are now turning bullish. As usual, they always seem to come late to the party. Below is the article from Bloomberg.

Thank goodness I did not listen to them and instead followed my own strategy of staying invested as long as stocks were fundamentally cheap and on a confirmed uptrend. As a result, I have happily been making lots of money while the amateurs have been left out of the opportunity again. This is a sneak peek at my current portfolio.

I am glad that many of my students at Wealth Academy have stuck to their winning investment strategies and have been making nice profits as well. Just received a nice email from one of my students below who made $6,000+ in the last 2 months.


Although some people may believe that markets are still overbought in the short term, I believe that we are just at the beginning of a sustainable uptrend for the rest of the year (barring any unforseen collapse in the Euro or a war in Iran). I stick to my thesis that Singapore and Shanghai will outperform this year with certain sectors in the US markets with still a lot of appreciation potential.

The US market remains on its confirm medium term uptrend. Singapore’s STI and many Singapore stocks are still on a short term uptrend but the medium term uptrend is not confirmed yet. Have to wait for a few more days to see a confirmation. This is why I have currently more invested in my US positions than my Singapore ones. That will change once the local stocks confirm their uptrend.