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Steve's note: Today's DailyWealth originally appeared yesterday in the Stansberry Digest. But the information it contains is so important, we wanted to make sure you saw it again...
A Simple, Powerful Gold Signal You Can Use Right NowBy
Thursday, May 19, 2016
Yesterday, I introduced you to the best investing strategy you'd never heard of...
It beats the market. It has only lost money in one out of the last 40 years. And it's so simple a monkey could follow it. It takes about five minutes a month.
Importantly, you don't have to know anything about interest rates, price-to-earnings ratios, recessions, or anything...
All you need to know is, at the end of the month, whether the trend was up or down in any of those five assets.
Is the black line above the blue line? If yes, then buy it. If no, then don't buy it. That's it.
The returns based on that investing strategy are fantastic, as I showed. Astoundingly, that exact same simple system works for gold, too...
If the black line (the gold price) is above the blue line (the trend), then buy gold. If the black line is below the blue line, then don't buy gold.
See for yourself:
 As you can see, from about 2005 to 2011, you wanted to own gold. And from 2012 to 2015, you didn't want to own gold. (The blue line is the 10-month moving average.) The results of this incredibly "dumb" system are astounding. Since 1971...
For comparison, buying and holding gold would have delivered an 8% compound annual return. What gold strategy do you have that beats this dumb system?
Most people don't have one. But we actually do...
In my True Wealth Systems service, we have a variety of gold systems that are more advanced than this "dumb" system. Going back to 1971...
These are astounding results. (Of course, these systems are not in buy mode all the time.)
While these systems are more advanced than the simple system I shared above, they do have a lot in common. They don't care about interest rates, price-to-earnings ratios, recessions, inflation, or anything like that. At their core, they rely on trends.
Most investors don't believe you can make money by simply following trends... After this week's DailyWealth essays, I hope you've learned the real power of simply sticking with the trend.
Good investing,
Steve
Further Reading:
"Simply following prices shouldn't lead to massive gains. But it does," Steve writes. "When you crunch the numbers, you learn that's what works." This week, he has talked about the best investors you've never heard of and the best investing strategy you've never heard of. And the message is clear: Don't fight the trend.
Market NotesTHIS POPULAR TECH FIRM IS CRASHING Today, we look at the rapid fall of tech startup Lending Club (LC)...
Founded 10 years ago, the San Francisco-based firm is the world's largest peer-to-peer lending firm. It allows people to borrow money for personal or small-business loans from investors who want to back them.
But earlier this month, Lending Club ran into trouble. Its founder resigned as chairman and CEO after the company admitted it had altered loan application dates, prompting the U.S. Department of Justice to investigate. Meanwhile, shareholders have launched multiple class-action lawsuits against Lending Club.
Since going public in December 2014 at a valuation of more than $5 billion, shares have been in a steady decline. But things have gotten much worse recently. The stock has plunged more than 50% over the last month after the negative headlines. And a turnaround looks unlikely anytime soon...
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