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172 Don’t Make Me Say I Told You So

Again, we’re going back to 2009 because these periods of
dramatic market declines leave investors open to the opinions

of “doom and gloomers.”

By October 2009, the market had rebounded sharply from
the lows of March 2009, and both of these newsletter publishers
were predicting that stocks had peaked out and were going to

fall precipitously. Let’s see what might have happened if you

believed the opinion of one of the newsletter authors and
followed his advice.

... [Howard Ruff of Ruff Times] has suddenly become
aggressively negative:

“You can now bet against the stock market. I don’t usually make
‘short-term’ calls like this, but the stock market has made such

a big, unsustainable rally, it will cave in big-time. If you carefully
read the history of the Great Depression of the ‘30s, you will see

that at least twice during the Depression the stock market had a
rally equal to the one we just had in the last few months. ...

Ruff urges that any long positions be hedged with the Rydex
Inverse S&P Strategy fund.

Let’s look at how you would have fared had you taken Howard
Ruff’s advice and invested in the Rydex Inverse S&P Strategy

Fund. Here is how a $500,000 investment in that fund would

Chapter 4: The Most Common Investor Mistakes