Is it Time to Go All In?
Hi. I’m Rodney Johnson, Co-Founder of Dent Research.
Seems like the financial world’s gone crazy.
It’s all kind of out of whack.
So, is this a time for investors to go all in?
Should they just say, “Dang it. Things have gone up. I’m just gonna put it all in there. I’m gonna buy and hold and hope that things go well”?
I don’t think so.
We’re still very concerned about the economy. We’re looking around at what’s going on, and there are big flaws in where we are today.
Our demographic research told us this was coming, and it told us that it would last from 2008 through 2022. We’re kind of in the gut of this right now. So even though the markets are hitting all-time highs, it just feels wrong. There’s something about this where there’s this big divergence between where the markets are going and what we know is going on in the economy. Consumers feel it, workers feel it, and investors certainly feel it.
We’re all waiting for that other shoe to drop.
Well, we’ve got a problem. We all have to invest, right? We have to make money. We have to grow our portfolio. In that way, things aren’t that different than they were in 2011 when we started Dent Research. Worried about growth in the economy; worried about what’s going on. And you got markets going up, and you’ve gotta make money.
So we introduced our readers to Adam O’Dell, who brought his skills to bear. The results back then, as today, have been outstanding. Adam will tell you not every position’s a winner. That’s not the way things work. He’s looking for consistent returns while limiting risk, and he does it by ignoring the financial press. He tunes out the talking heads, and he blocks out the analysts. That’s not what he’s looking for.
He’s watching something much more consistent: the seasonality of industries. Some industries do better in the spring. Some have a good season in the fall. Some are better in the summer. He watches for the industries when they come into favor, and then he’s looking for great opportunities within the industries that are in favor.
And he’s looking for short-term plays. This is key because he’s not just gonna sit in the market for a long time and potentially get crushed by a big downturn. He’s looking to make money on his short-term momentum move and then get out. He’s not waiting for a story to turn around. He’s not waiting for something to come back into favor in just his stock. He’s looking to make that move. He wants to earn the decent profit and move on.
Now, he’s had some exciting gains. He’s had triple-digit gains, and those are great stories to talk about. Everybody likes those, but that’s not the magic. The magic is the consistency. He’s been able to earn average annual gains of 32.3% – well above the markets – for years.
In 2011, as I said when we started all this, we were concerned about the markets, concerned about the economy. That’s only gotten bigger. The divergence between where the economy is and where the market is has just grown exponentially. Now is not the time for complacency and hope.
— Rodney Johnson
Co-Founder, Dent Research