A DIFFERENT KIND OF DAY

I walked into a meeting today with a couple of brokers and their first words to me were, “Wow, Dan – all dressed up today.” I smiled and nodded my head. Truth be told, I’m a notoriously causal dresser. But today was different.

Today was my first personal encounter with the Wall Street establishment since publishing LOSE YOUR BROKER NOT YOUR MONEY. My attire was similar to that of my book cover, which is much different than my jeans-and-a-T-shirt style. But I was anxious to see how they would react to my book – what they would say, how they would say it. So I dressed up.

Indeed this was a different kind of day.

It was only yesterday that I thought I heard and seen it all from the Wall Street establishment. But today, on this special day, wearing my Sunday best and staring the Muse in the face, I was presented the most absurd statement ever uttered from a broker’s mouth. At one point in the conversation a broker said that the Dow Jones Industrial Average is “an insignificant index.”

Clearly they didn’t read my book.

Those who have know that I have nothing but the utmost respect for the Dow Jones Industrial Average because it is a brilliant piece of work – and that’s coming from a guy like me who created a market index of his own (called the 15-51 Indicator) that outperforms the DJIA by triple-digit percentages over the long term.

The Dow Jones Industrial Average is a work of art with a long track record of reliable market indication. That’s why most people refer to it as “the market.”

So let me ask: How could something with such an important title be considered “insignificant?”– and, Why would a broker say such a thing?

Because we were talking about benchmarking performance returns. The portfolios that broker’s throw together can never outperform the DJIA – or the S&P 500 for that matter. That’s why the Dow is “insignificant.” That’s why it no longer matters; no longer counts; and because it’s too small, it doesn’t mean anything. Now they throw the S&P 500 in that category as well.

Don’t believe it for a second.

The reason for this new Wall Street pitch is because they’re now looking to benchmark off a global portfolio comprised of thousands of stocks spanning every corner of the world (including troubled European and Asian stocks) because it’s easier to beat, easier track, or both.  By lowering benchmarks, Wall Street lowers standards and expectations so they can sell you more stuff – so they can make more money while you get stuck holding the short end of the stick.

It’s time to LOSE YOUR BROKER and START MAKING EASY MONEY.

Investment is about performance and building wealth. In order to build wealth your stock portfolio must outperform the DJIA. That’s easy to do with superior 15-51 construction and the LYB method. In fact, using my portfolio builder makes it easy to beat the above-average performing 15-51 Indicator. For example, here’s a portfolio I created using LYB’s exclusive tools, I call it: Easy Money.

EasyMoney5yr

During this 5 year period my Easy Money portfolio beat the DJIA by 1,209% (133% versus 11% respectively), and outperformed the 15-51 Indicator portfolio by 215% (133% versus 62%.)

If your investment portfolio was 50% cash and 50% Easy Money it would have outperformed “the market” by 604.5% in five years; a portfolio with 66% in cash would have outperformed by 403% in the same time. Brokers who say you must be 100% invested (that is to have zero cash balance) in order to produce robust investment returns don’t deserve your business. You could do better.