Three years after the book 'Dow 36,000, The New Strategy for Profiting From the Coming Rise in the Stock Market' was published, stocks were down 40%.
Three years after 'The Great Depression Ahead' was published, stocks had doubled.
The Aspire investment strategy is based on the premise that the markets operate in four dimensions.
Technical and Fundamental analysis, or the study of the facts and figures, make up the first and second dimensions, and it is these that dominate the minds of most investment managers. But taking such a purely a rational approach is to ignore the power of the third and fourth dimensions: how markets can be swept along by a tide of emotion, as the hopes and fears of millions of investors come together to propel markets up peaks of euphoria and down valleys of despair.
The truth is that things are rarely as rosy as they seem, and neither are they as frightening as might appear. The key for investors is to acknowledge that markets are more often than not driven by sentiment, not good investing sense, and to make investing decisions in recognition of this.
The Aspire investment strategy seeks to replace such emotional charged decision-making with well reasoned coherent action, and when emotion is causing investors to narrow their focus on short-term outcomes, to take advantage of those long-term opportunities that then arise.