How many fitness infomercials do you have to watch to understand weight loss? I have seen special ab workouts that in merely 5 minutes can carve you into a statue of perfection. I have also seen the latest diet pill that if you take it every day can "fool" your body into thinking it's not hungry and you will drop weight like a professional wrestler. It's simple math, folks: calories in versus calories out. If you eat more than you burn, I don't care what you do, you aren't losing weight. Don't try to out-think yourself; it ends up hurting you in the long run.
This takes me to my point about the market: We know it stinks out there -- every financial publication, investment show is telling you that. The world is going to hell in a handbasket; the EU is crumbling -- so lets all curl up in a little ball and hope and wish and pray we all survive! No, that's not how I operate.
Life goes on. You still have to learn to navigate the markets, plain and simple. Don't let this current situation take you out of your game -- no crazy option plays, no ridculously hedged ProShares or any other garbage like that to try and recoup 2 years of bad returns. No penny stocks that if they go from a nickel to a dollar will get you back to even. Been there, done that!
Anyone want to know why McDonald's (NYSE:MCD) has crushed the indexes in the past 6 months or so? People need to eat, don't they? Take a look at this chart:
MCD markets brilliantly and keeps it simple. It serves lower-quality food for cheap prices, and floods the market with ads. You can't go a day without seeing or hearing one. Don't out-think yourself. People still have to eat, and here is an industry stalwart. Buy it!
People also need to take care of themselves. Hygiene is very important, so I ask you to take a look at the chart for Colgate-Palmolive (NYSE:CL):
Over the past 5 years it's killed the indexes, and it's just a personal care company, plain and simple. It doesn't have to market as aggressively as McDonalds does; you go into the supermarket and you can't miss one of its products. I will say it again: Buy it.
Lastly, every person in the world has to drive, fly, or take a train somewhere -- for work, pleasure or whatever. I don't want to burst your bubble (and people will hem and haw about our reliance on foreign oil and how we should be drilling offshore to eliminate our dependency). But take a look at this chart, please:
Our "majors," as the analysts call them, don't look so "major" anymore. They are a blip on the bottom of the screen. This chart should wake you up to the reality that we are attached at the hip to foreign oil. If you can't beat 'em, join 'em. I like ConocoPhillips (NYSE:COP) the best, and the chart below shows why:
It's beaten the indexes by a healthy margin, and although all the oil companies probably gouged you at one time or another, I think this one is the best. I will say it for the last time: Don't out-think yourself -- buy it!
Remember, you don't have to win right now, just survive enough to fight another day. Good luck, and send me a message if you have any questions.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.