Follow The Money - The Rich Know When To Get Out Of Investments

It is no surprise to the people who have earned and held onto great wealth for years that the US stock market just hit a new all time high. While get rich quick characters are all over late night television with the 30 minute infomercials, the folks with the real money know when to move most of their investments back and forth between the two most proven investments in the world. The first proven investment is the US stock market and the other is real estate in the United States and the real trick to successful investing is to know when to move from one to the other. Ever heard the old saying that “the rich get richer and the poor get poorer”? Unfortunately, that saying is true for one very simple reason and that reason is that rich folks have discovered not only how to earn great sums of money, but they have also learned how to invest that income and turn it into even more money.

Very few times during the history of the United States have real estate and blue chip stocks both moved up at the same time with tremendous growth. I believe the reason this is true is because the people who have most of the money tend to cause the free market to move because they have so much money to invest that while they might want to hide their true intentions, they can’t because they have so much to invest. Real money is earned in the stock market and in real estate after a collapse or as the experts choose to call it a correction. The biggest mistake most people make in their investment lives is to follow the crowd and put their investment dollars where their friends and neighbors or stock professional says is best. It has been proven time and time again that the only way to earn truly high returns in the stock market and in real estate is to think boldly and go where no one else desires to be.

As young children we are taught that if we want to be popular and not be ridiculed by others, the safest thing to do is to go along with the crowd. While this is the best policy for getting along and making friends, it is a terrible strategy when it comes to investing money. If following the crowd was the right thing to do 80% of the worlds wealth would be evenly divided among the population. However, in the real world, 80% of the wealth is controlled by only 20% of the people and this has been the case for hundreds of years. There will always be people who will make good financial decisions while at the same time other folks couldn’t make the right decision if it hit them right in the face. While I don’t claim to have the answer of when a person should make the move from the stock market to real estate and then back to the stock market, again; this move does seem to be very popular with rich folks who seem to always profit from this switching of their money.

Knowing that something like this works is only half the battle because the real test which will move investors from the sidelines and onto great financial benefits comes when they learn the correct procedure of when to make the move between these two major investments. The people who figure this out, correctly, are the folks in that 20% with the most money and they are not sharing what they know with the rest of us and who could blame them? I’m sure every year a few others figure out this formula and join the ranks of the people who will someday become super wealthy while at the same time millions of other folks who just think they are smart enough to play with the big boys will lose enough money to help this financial game continue to be very profitable for the professionals who play and win every single day.

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Follow The Money