Most individual Minnesota stock market investors believe that successful stock market investing is a mystical, magical, and complicated process. They think that consistent stock market returns are only available to professional investment managers.

That is not the case. Stock market investing can be a very simple process to understand. The most important thing to know is what direction the current stock market is going.

There are train tracks all over Golden Valley, MN. Within blocks of my office, there are three different train tracks heading in three different directions. Think about the stock market as one big train on one of those tracks.

If you want to go north, you can’t get there by traveling on a train going south. If you are on a train that is going north, and the train begins to head south, what do you need to do?

That’s right; you need to get off the train. You need to always stay on the train that is traveling in the direction that you want to go.

The U.S. stock market train has been heading north for the last several years. The direction has not been straight north, but it has still been north. Every stock market investor has had the good fortune to be on the right train at the right time. At some point, the U.S. stock market train is going to begin to head south. The trend of the U.S. stock markets will change and so will the direction. You don’t want to be on a stock market train heading south.

The question is, “How do I know when the stock market train begins to head south?”

You don’t need to be a professional investment manager to best answer this question. You only have to pay attention to what is going on around you.

Ric Lager
Lager & Company, Inc.

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