Investor Stress: A New Approach
George Muzea is both an investor and a stock market advisor. In
any given month, he will be paid $100,000- for one hour of
consultation by an investor for his advice on the stock market.
He advises over 100 such investor firms.
In any given week, he will be called upon to help such firms
direct upwards of a Trillion dollars (yes, you read that
right...one Trillion dollars) of investor assets... How's that
for stress?
So, how does George Muzea sleep? I ask that because any
percentage of a trillion dollars would keep me wide-eyed through
the night. Every night.
I know George Muzea. I am told he sleeps well. Investor or not,
why wouldn't he? Given his track record as an investor advisor
to men like George Soros and Stanley Druckenmiller, investor
stress doesn't appear to be a problem.
Is it due to the fact that he is a "natural" investor? You know
the kind, extremely lucky. They fall into sewers and come up
with gold watches on both wrists. Actually... the answer is a
resounding "no".
As an investor and advisor, George Muzea has a brilliant system
which any investor, trader, portfolio manager...or just about
any professional who wants to protect his portfolio from his
investment advisor...can learn. If I as an options trader can
learn and apply it, so can any investor.
By the way, I sleep better now.
"It's not Brain surgery" (I'm quoting George Muzea here very
exactly)...Any investor can learn it. Since it's not brain
surgery the next question for any investor is a natural: "Does
it work...and what has this to do with stress?"
Play close attention. It's not brain surgery...and it sure beats
open heart surgery (just in case investor stress is a problem
for you).
Does Stress Inhibit Performance?
In other words, as an investor, are you losing money because of
stress? Maybe. To answer that question, we have to answer the
first one above. Namely, "Does stress inhibit performance?"
Absolutely. Countless medical studies have conclusively shown
performance in any field to be compromised by stress.
Stress management has grown up around us as almost a science.
But, what about the world of the investor? Stock and options
traders are in occupations known for stress...constant stress.
But, anyone who worries about his portfolio, his or her
retirement, has stress to worry about too. It is not very
comforting to know that most stock advisors, newsletter writers,
and media advisors lose money for their clients, readers, and
listeners (stress again).
The tragedy surrounding investor Arthur Kane is worth a moment's
reflection (though it is not the reason for this article). His
actions are a reminder that stress plays out every day in the
world of the investor...just not to the degree it did with Kane.
But, stress does play a huge role in investor trading.
Do you recall Arthur Kane? He was an investor who lived in
Miami. As an investor he did what many investors do, he bought
stock on margin (stress!)... until he was deep in debt (stress
again). On Black Monday, October 19, 1987 the Dow dropped 22.6%
(stress in a big way).
Kane was so distraught when the stock hit "bottom" that day, he
walked into a Merrill Lynch office and opened fire, killing one
person and paralyzing another...before he committed suicide.
If he had just waited one more day...the stock market turned
around and the world of the investor was back on track.
Just one more day. You see, his tragedy plays out all the
time...just not to that extreme.
How many of us succumb to market stress and sell out our
position because it is hitting bottom and the investor world
around is frightened? Come on...fess up. Stress often empties
wallets just as well as market direction.
In Contrast, George Muzea Has His Own "Stress" System
I call it his "stress system". He doesn't. He has nicknamed it
the "MagicT." It has worked for 30 years...which is why the
investor world pays him so well for his advice.
In 1987 (May, 1987, to be exact), his MagicT turned negative.
George Muzea had all of his clients out of their positions long
before Black Monday stressed Arthur Kane.
If you are a stock trader, stock broker, money manager,
financial advisor, retirement specialist or a person who has
built up a portfolio and doesn't like taking losses...note the
following (for the relief of stress and making money).
George called all of his investor clients 18 months before Enron
hit the papers...to advise them there was a severe problem with
Enron. He didn't know anything about what was happening inside
Enron...except he knew how to "read the Insiders" of publicly
traded companies (there are 60,000 of them defined by the
Security and Exchange Commission in the United States.).
He read them like the proverbial book...without stress.
Investors take note.
Imagine, if you had had substantial Enron holdings in your
portfolio. Wouldn't you have wanted to be able to go to the
Internet, look on a screen ...and immediately call your
portfolio manager and order a sell (or, as one of the investor
clients of George Muzea did) ... short the position (and he made
a lot of money)?
While investors like Mr. Kane are in a panic near the bottom of
market cycles, George Muzea reads the Insiders of companies and
the depressed news and analysts...and is usually buying. Yes.
Buying (normally). (Learn why with his free course.)
Nearing the top of cycles, when the world is euphoric, the
Insiders are usually selling...and so is George Muzea and his
investor clientele (normally, again). No whipsaws. No panic
selling. No Enron. No Black Monday surprises. No stress. How
does he do it?