The One Minute Millionaire Diamond Mine
 The Wealth Factor
 Stock Market Strategies
 By Dr. Stephen Cooper
     
 
 

Of Mirrors, Smoke and Scandal

On the heels of the profound effect 9/11 had on the financial markets, came another series of terrorist attacks. These attacks were not well publicized. They were not even described by the media as attacks at all. Yet, they had the same eroding and demoralizing effects. These attackers did not come from foreign lands but from the very heart of our own financial infrastructure. Perhaps you’ll recognize who these attackers were if I give you a few key words. Tyco, Enron, WorldCom.

The intended outcome of terrorism is to cause its victims to have fear where they did not fear before. It hopes to change the way those who have been terrorized think and behave. If successful, it causes change in the everyday lives of the terrorized. It alters perceptions of the future, bringing clouds of doubt and cold winds that etch away at hope.

The great Bear Market that began in March of 2000 has been fed and kept alive longer than its otherwise natural course, by the individual greed and dishonesty of a very few highly placed executives in some of the very companies that had earlier helped to bring prosperity to America. As we were deceived and swindled out of our money, some measure of trust in the stock market in general went with it.

Uncertainty is like an unending winter

For investors, there is nothing so chilling as uncertainty about the future. Uncertainty causes even the most seasoned investor to shiver and worry. When investors are feeling unsure about what is on the horizon, they stop adding money to the markets and, in fact, pull it out at every opportunity. The 9/11 attackers were quite successful in causing the majority of Americans to question how bright the future might be. As much of the initial shock subsided, we were then hit by a series of corporate scandals in 2001. This wave of discovered dishonesty at very high levels blasted the markets with more bone-shaking realizations of our financial mortality. In my opinion, corporate misdealing had a more powerful and profound effect on the markets than did 9/11. It just was not talked about in the same terms, and we’ve taken quite some time to get past the initial shock.

Take a look at this chart of the Dow Jones Industrial Average. It was not until March of 2003 that a significant come-back rally was staged. At present these tremendous gains are being “digested” which show on the chart as sideways prices.

Interestingly, this very powerful 3 month rally has not been taken very seriously by the media or the general population of even casual market watchers. This unwillingness to give the markets credit for making such gains tells me that the terrorists’ deeds are still being successful in keeping us in a state of fear and uncertainty.

Who decides what “News” is anyway?

You may have noticed that in the news, more talk of an impending market drop has been reported than the reality of the market rise. Many are still looking over their shoulders for the next disaster, the next piece of bad economic news, or the next foreign policy scare. Have you been one of these?

Here is a bit of good news

The good news is you don’t have to keep worrying! The US Stock Market has always gone up within any 10 year window of time. If you are investing for the long haul, the times when the markets are down actually provide you opportunities to buy shares of mutual funds or stocks at discounted prices. If you are a trader (as I teach), then you can make money whether the markets go up or down–it doesn’t matter.

This all could be a large example of the “glass half full or half empty” scenario. When many see danger, you can be sure that there is plenty of opportunity for those who don’t.

   
 

Dr. Stephen Cooper is the Director of OnlineOption.com, a training and support Web Site for both beginning and advanced traders. Over the past four years, Dr. Stephen Cooper has been the primary Stock Market Trainer for Mark Victor Hansen and Robert Allen’s Enlightened Millionaire Institute. He has taught thousands of students his proven trading strategies. He is the author of The Online Option Trader, Windows to Wealth, and The Truth About Money. He has also authored 10 interactive chart analysis tutorial CDs and contributed to several newsletters and publications.