Editor’s note: As regular Chaikin PowerFeed readers know, we’ve been bullish on stocks for 2024…
But we also know that things feel uncertain out there. Folks are feeling the squeeze of inflation… Interest rates are still high… War is raging in the Middle East and in Europe… And to top it off, we’re in a presidential-election year.
During times like these, it’s critical to make sure your investing approach is ready to withstand the uncertainty and volatility. So that’s why today, we’re sharing a classic essay from Marc Chaikin that explains one of the first big lessons he learned on Wall Street.
This essay – which we’ve adapted slightly – first appeared in the PowerFeed back on March 28, 2022. But as you’ll see, it contains an important piece of advice for investors amid the current environment…
“You’re not really going to only rely on the firm’s research, are you?”
It was 1966. I had just landed a position as a broker on Wall Street. And at the time, I really did think my own firm’s research would be more than enough for me and my clients.
But then, a member of the “old guard” pulled me aside to tell me different…
“Listen, you’ll have to learn this on your own. But there’s someone I think you should know about.”
It might sound like a random piece of advice. But it was actually a life-changing introduction. And it completely transformed my approach to helping investors.
Let me explain…
It started when my colleague introduced me to George Chestnutt’s financial writing. I’m guessing you haven’t heard of Chestnutt. But his work was pioneering at the time.
He used math to find the strongest industry groups – and the strongest stocks in those groups.
That made Chestnutt an outsider for sure. Back then, nearly everyone was looking at a smattering of fundamentals. Then, they’d assemble an interesting story around those few bullet points, and that was it.
The best storytellers turned out to be talented brokers. That is, they were talented at getting their clients to buy.
Great for them… not so great for their clients.
The day of that conversation, I realized my mentor was right. I needed more than just stories.
My clients deserved better. Not only that… to be able to really sell, I knew I’d need to have data to back up my claims.
So I did the most reasonable thing… I signed up for Chestnutt’s newsletter service.
Chestnutt’s work was my way of accessing the best data available at the time. And I knew that I wanted the best data available on my side.
Here’s the thing, though. To get the best data, you need to go the extra mile…
Chestnutt was a bit out there compared with most analysts at the time. The guy spent his time meticulously tracking the major industries trading on Wall Street. He did a lot of it by hand. And he did the rest with early calculators.
Those of us who were around back then know that was a monumental task. You’d have to be a little crazy to even pursue it.
I didn’t realize where I was headed, back in the ’60s – not at first. But once I looked outside my own firm, I started to follow Chestnutt’s path. My life’s work became collecting data, parsing it, and using it to make evidence-based investing decisions.
I’ve been very fortunate and successful at it.
Bloomberg built my systems into its world-famous trading terminals. And its main competitor Refinitiv (previously Thomson Reuters) did, too.
I made finding the best data into my life’s goal. And just as important, I wanted to help folks by performing the best analysis on it.
I’ve found it deeply rewarding. And I’m passionate about sharing it. That’s because the best data gives you an edge as an investor that nothing else can.
I saw firsthand exactly how important this was after the financial crisis in 2008…
I saw the little guy get creamed by Wall Street. So my focus shifted yet again.
I developed a set of tools for individual investors. They’re specifically designed to turn trading and investing into a fair fight for people who aren’t Wall Street elites.
Together, this set of tools is called the Power Gauge. And as regular PowerFeed readers know, I’ve poured everything I’ve learned over my more than 50 years in finance into it.
And the thing is… I’m seeing something big in the data today. In fact, it’s the kind of market event that has a nasty habit of catching individual investors off guard.
So now, more than ever… you need good data. It’s essential in today’s market conditions.
That’s why I’m going on camera for a special event next Thursday evening. I’ll be discussing an election-year event that’s headed straight for the stock market. And here at Chaikin Analytics, we’re tracking it with 90% accuracy in the Power Gauge.
Unfortunately, individual investors who aren’t aware of this situation will be left asking themselves, “What happened?“
I want to make sure you don’t get left in the dark.
So please join me next Thursday, February 29, at 8 p.m. Eastern time as I share all the details. I’ll also explain the one urgent move you need to make with your money to prepare for what’s coming. Register to attend this free event right here.
Good investing,
Marc Chaikin
