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PROTECTING THE PIG
How Stock Market Trends
Reveal the Way to
Grow and Preserve your Wealth
JEFF LINK
Contents
Disclaimer
The contents of this book, including any references to materials or investments presented herein, do not constitute an investment recommendation. As such, this book does not contain all information that a prospective investor may desire in evaluating an investment strategy or individual investment.
Each investor must rely on his or her own examination of an investment strategy or individual investment, including the merits and risks involved in making an investment decision. Prior to making an investment decision, a prospective investor should consult his or her own counsel, accountants, and other financial professionals to evaluate the merits of an investment strategy or individual investment. Additionally, past performance of any investment strategy or individual investment referenced herein should not be relied upon as a guarantee of future performance, and no warranty of future performance is intended or implied.
This book is not intended to teach you how to manage your financial investments, but rather to teach certain investment-related concepts that may help you to become a more successful investor with the help of an investment professional.
The opinions in this book are those of the author only and are as of the date of publication. They are subject to change without notice.
Dedication
This book is dedicated to Yahweh my Elohiym and His only begotten Son, Yeshua my Lord, my Savior, my Redeemer, and my King.
Praise ye the LORD. Praise the LORD, O my soul. While I live will I praise the LORD: I will sing praises unto my God while I have any being. Put not your trust in princes, nor in the son of man, in whom there is no help. His breath goeth forth, he returneth to his earth; in that very day his thoughts perish. Happy is he that hath the God of Jacob for his help, whose hope is in the LORD his God: Which made heaven, and earth, the sea, and all that therein is: Which keepeth truth forever: Which executeth judgement for the oppressed: Which giveth food to the hungry. The LORD looseth the prisoners: The LORD openeth the eyes of the blind: the LORD raiseth them that are bowed down: the LORD loveth the righteous: The LORD preserveth the strangers; he relieveth the fatherless and widow: but the way of the wicked he turneth upside down. The LORD shall reign forever, even thy God, O Zion, unto all generations. Praise ye the LORD.
Psalms 146 (KJV)
Special Thanks
Thank you for purchasing this book. In addition to making an investment in yourself, your purchase will make an investment in the lives of others. While living, it is my express intent to donate at least 55 percent of royalties to support charities in the state of North Carolina whose programs support primarily orphans, children with special needs, and food banks.
I also wish to thank the following people who contributed to this book. Without their help, I could not have completed this project: my wife, Julie, Book Launchers, Allen Summerford, Bradley Turlington, Claire Young, William Gupton, Pa Manneh, Bryan Yurko, Chris Peck, Christian Olmstead, David Forrest, Dianne Rogers, Tammi Rowe, Courtney Barbee, and all the individuals who shared their stories for this book, whose names will remain anonymous. You know who you are. Thank you.
Chapter 1
Cause and Effect
Follow the trend lines, not the headlines.
Bill Clinton
Mallory was in shock. Eighteen months earlier she had sold her business and invested the proceeds in the financial markets, expecting her wealth to grow. But her most recent monthly investment statement was showing a loss of 42 percent!
This is her story.
Mallory co-owned and operated a retail service business with her father in the mid-1990s. And while she was a co-owner, she managed all of the businesss day-to-day operations. But six years into their partnership, Mallory and her father realized the business wouldnt support them both financially, so Mallorys father sold her his interest and retired.
Over the next six years, Mallory ran the business. She managed a staff of 30 full-time and up to 20 part-time employees depending on the season. It was common for her to work 60 to 80 hours every week, and the long hours and repetitive nature of the work began to take a toll.
In early 2007, she was approached by a consolidation company that wanted to buy her business. After a brief period of negotiations, they came to terms for a sale. It took a speedy 90 days for the entire transaction to come to pass. The whole thing happened so fast that Mallory wasnt sure what to do next. So she deposited the check at her local bank as she considered her options.
The teller suggested Mallory meet with one of the investment professionals in the banks private client group. Since Mallory had always trusted the bank, she agreed to an initial meeting. That meeting led to several more and before long she had a plan. Even though she had profited handsomely from the sale, she didnt have enough to retire and maintain her desired lifestyle, so she continued working as a consultant for the consolidation company. Her new investment professional recommended investing 90 percent of her money in stock mutual funds and 10 percent in bond mutual funds as part of her long-term financial plan. With her consent, her money was invested in the financial markets over the next three months using a dollar-cost-averaging strategy.
Even though Mallory didnt know much about investing in financial markets, especially the stock market, she was eager to watch her wealth grow while she continued to work. She believed everything would work out well since, as she understood it, time was on her side.
But the 42 percent loss on her statement told her otherwise. Mallory lost confidence, and before long she began to make changes to her long-term plan to attempt to recover those losses.
Everything you just read about Mallorys story is true with one exception: Mallory isnt her real name. I chose the name Mallory because it means unfortunate, and what I find most unfortunate about her story is I believe some of her losses were preventable. But I dont want you to take my word for ittheres proof.