Skousen CAFE: The Single Most Important Lesson on Wall Street (You Might Be Surprised)

You are receiving this email because you signed up to receive our free e-letter Skousen Investor Cafe, or you purchased a product or service from its publisher, Eagle Financial Publications. [Skousen's Investor CAFE] [Forecasts & Strategies]( [Fast Money Alert]( [Five Star Trader]( [Home Run Trader]( [TNT Trader]( The Single Most Important Lesson on Wall Street (You Might Be Surprised) By Mark Skousen Editor, [Forecasts & Strategies]( 07/04/2024 Sponsored Content [The one thing that you could still buy at 2014 prices]( Did you notice that prices just keep going up? But there is one thing you could do to protect yourself right now. To celebrate our 10 year anniversary, we are doing something special...Beating inflation (and letting people access this unique strategy at 2014 prices). This special deal is available for a limited time. [So go HERE to secure this discount while available - and inflation can't touch it.]( “The art of investing is being able to adjust to change.” -- Gerald Loeb, “The Battle for Investment Survival” Happy Fourth of July! See my special offer below in honor of financial independence. I was reminded of the #1 lesson in investing when the drug store Walgreens fell a dramatic 28% last Thursday after reporting dismal earnings. It has yet to recover. I breathed a sigh of relief because a year ago Walgreens was in my “Flying Five” portfolio along with four other stocks that had done poorly in the past year or two, and I had wisely dropped them from my newsletter and replaced them with a better group of stocks. In fact, Walgreens stock is down 65% since I removed it from our “Flying Five” portfolio. In February this year, Dow Jones removed Walgreens from the Dow Jones Industrial Average and replaced it with Amazon. Better late than never! For years, I had included in my ideal investment portfolio the five Dow stocks with the highest dividend and the lowest price. It was a simple technique to find the best bargains among blue-chip stocks. It beat the market by a substantial margin, most of the time, since the early 1990s. But as the old saying goes, “The trend is your friend… until it ends.” (Maxims of Wall Street, p. 113). After a couple of years of underperformance, I realized it was time for a change. The old “Flying Five” strategy wasn’t working any more. As the economist Paul Samuelson once said, “I hate to be wrong. But I hate more to stay wrong.” (p. 30). So, I came up with better criteria for finding good growth and income stocks in the Dow Jones Industrial Average, and it was a good move. All of the new “Flying Five” stocks are making money, and one is up 45% in less than a year! [Here’s Why Green Energy Is CRASHING]( It’s not just because the wind doesn’t always blow and the sun doesn’t always shine. It’s because Republicans AND Democrats are now turning to a new, alternative energy source that can power America with efficient, 100% clean energy for decades.[See the full story here.]( Recognizing the Need to Change I’ve been writing my investment newsletter, [Forecasts & Strategies]( for 44 years. What is the most important lesson I’ve learned? It took a while for me to figure it out. Years ago, I noticed that I hardly ever received any letters from subscribers thanking me for a recommendation that made them a lot of money. But I got plenty of letters complaining when I made a recommendation that lost money. In finance, they call it “loss aversion.” Investors tend to focus on their losses more than their gains. So, what is the #1 lesson on Wall Street? I was surprised that the answer was found throughout my collection of sayings in “The Maxims of Wall Street.” It came under the title, “Losing Money in the Stock Market,” which runs a remarkable seven pages long, one of my longest sections of the book. Here are some sample quotes: “Warren Buffett has two rules of investing: #1. Never lose money. #2. See rule #1.” (p. 165) In his book on Warren Buffett and George Soros, Mark Tier writes, “When Buffett and Soros invest, they’re not focused on the profits but on not losing money.” Warren Buffett warns, “Above all, avoid big mistakes.” (p. 166) Why? Because it’s hard to recover from a huge loss. If a stock drops 50%, you have to double your money (make 100%) to get back to break even. That’s why Gerald Loeb states, “Cutting losses is the one and only rule of the markets.” (p. 131) The Golden Rule of Investing Or, as the wealthy economist David Ricardo advised, “Cut your losses short, let your profits run.” (p. 128) He called it “the golden rule of investing.” Jesse Livermore, the most famous speculator in the twentieth century, put it this way: “Profits always take care of themselves, but losses never do.” (p. 166) And Roger McNamee said, “Avoiding losers is every bit as important as finding winners.” (p. 167) [It's hot gains season]( Exciting trades are exploding. With Nvidia's record-breaking surge making it the world's most valuable public company, the market is heating up with opportunities. The excitement around A.I.'s potential is creating waves that elite Options traders are riding to big wins. Want to know how top Options traders leverage A.I. for these gains?  Our complimentary live session will reveal the strategies and tools they use to stay ahead. Join over 100,000 traders who have already attended and benefited from this training and [Discover how top Options traders leverage A.I. in July for big wins](. Sound Advice for All Investors You, too, can learn the most important lessons in investing by regularly perusing your personal copy of “The Maxims of Wall Street.” As Dennis Gartman advises, “It’s amazing the depth of wisdom one can find in just one or two lines from your book. I have it on my desk and refer to it daily.” Special Offer on July 4th “The Maxims of Wall Street” is now in its 10th edition, having sold nearly 50,000 copies. Why? Because every story and quote in the “Maxims” is “a lesson in finance,” to quote Kim Githler, president of the MoneyShow. In honor of American independence, I’ll autograph every copy of the “Maxims” (or any of my other books) and date them July 4, 2024. To get your copy at a discount ($21), go to [www.skousenbooks.com](. Additional copies are only $11 each. An entire box (32 copies) costs only $327. They make the perfect gift for students, clients and friends. I will autograph each copy, date them July 4, 2024, and mail them at no extra charge if inside the United States. Update on FreedomFest Personal Note: The excitement is building with 2,000 investors and freedom lovers celebrating liberty at next week's FreedomFest, July 10-13, in Las Vegas. Check out all the speakers and our full agenda at [Agenda - FreedomFest](. Here is my schedule at this year’s big show: [My Schedule at FreedomFest 2024 - MSKOUSEN.COM](. Use code EAGLE50 to get $50 off. Register at [](, or call Hayley at 1-855-850-3733, ext. 201. Questions? Email hayley@freedomfest.com. See you in Vegas! Fly there, drive there, bike there, be there. P.S. CIA expert analyst reveals the "hidden" secret to evading the stock market crashes. I'll be sharing those details with you this Monday July 8th at 11:00 AM EST -- make sure to keep an eye on your inbox. Good Investing, AEIOU, [Mark Skousen] Mark Skousen Doti-Spogli Endowed Chair of Free Enterprise, Chapman University [Wikipedia]( [Newsletter and trading services]( [Personal website]( [FreedomFest]( [You Blew It!] Taxes Skyrocket... Under the "Conservative Party" in Britain! By Mark Skousen Editor, [Forecasts & Strategies]( "Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism, but peace, easy taxes and a tolerable administration of justice; all the rest being brought about by the natural course of things." -- Adam Smith Today, Eamonn Butler, the leader of the Adam Smith Institute, sent me this chart showing that Tax Freedom Day has been extended to June 10 in England. That means almost half the year is devoted to paying taxes there! Source: Adam Smith Institute. Reprinted by permission. What's even more shocking is that the growth in government came under the so-called "Conservative Party" -- the party of less government and lower taxes. No wonder the Conservative Party is expected to lose in the next election. Thomas Jefferson warned us: "The natural progress of things is for liberty to yield and government to gain ground." And Benjamin Franklin said, "A virtuous and industrious people may be cheaply governed." Lest we forget on July 4th! About Mark Skousen, Ph.D.: [Mark Skousen]Mark Skousen is an investment advisor, professional economist, university professor, author of more than 20 books, and founder of the annual FreedomFest conference. For the past 40+ years, Dr. Skousen has been investment director of the award-winning newsletter, [Forecasts & Strategies](. He also serves as investment director of four trading services: [TNT Trader]( [Five Star Trader]( [Home Run Trader]( and [Fast Money Alert](. 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