Here's the All-Important Difference Between a “Cheap Stock” and an Undervalued One

Original post

Millions of investors are focused, very myopically, on short-term trading at the moment. That’s perfectly understandable, but it’s a huge mistake in a midterm election year.

Why?

Because the single biggest risk facing investors today is not that the numbers driving our economy – earnings, jobs, interest rates – collapse, but rather that they’re better than “everyone” expects.

Too much “short-termism” results in too many losses, especially at this time of year, when traders are looking to do two things: a) clean house on their portfolios, and b) get in line for big year-end bonuses.

To be sure, the business cycle is long in the tooth; so is the bull market rally. But nowhere is it written in stone that either of those things must come to an end.

What is written, however, are the things that tend to produce huge profits time and again for savvy investors…

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About the Author

Keith Fitz-Gerald has been the Chief Investment Strategist for the Money Morning team since 2007. He’s a seasoned market analyst with decades of experience, and a highly accurate track record. Keith regularly travels the world in search of investment opportunities others don’t yet see or understand. In addition to heading The Money Map Report, Keith runs High Velocity Profits, which aims to get in, target gains, and get out clean. In his weekly Total Wealth, Keith has broken down his 30-plus years of success into three parts: Trends, Risk Assessment, and Tactics – meaning the exact techniques for making money. Sign up is free at totalwealthresearch.com.

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