Neil McCoy-Ward – The ULTIMATE Macro Economics & Stock Market Course

My early investing mistake…

One mistake I made was chasing after stocks which the media said were going to go up like a rocket. I got excited over the thought of my potential results.

So I jumped in and waited. A few months later, the stocks crashed in value. My mistakes cost me around £4,000. I felt foolish and embarrassed by my mistakes and I swore this would never happen to me again!

As a result, I sat down and analyzed everything. I realized I’d missed out a vital factor and that was – what was going on in the world…

What evolved is my own unique simple stock picking system

So what’s in my system that makes it so reliable and accurate?

The three factors that influence stock prices…

In my videos, I talk about macro-economics, financial economics and the geo-political situation. That’s because these three factors influence a country’s economy. As a result they also influence stock prices…

For instance, say a country is war mongering and the politicians are talking about war in a positive way…

The media then start reporting on the situations of the countries involved. This will have a knock on effect. The price of stocks in certain defense/armament companies will shoot up.

Another example is any talk of recession by the media. News of a recession hits consumer spending. As a result, people are more particular on what they spend their money on. They’ll spend on their needs more than their wants.

So people are less likely to dine out. They’ll take fewer holidays. They’ll keep their car for an extra few years.

This means companies operating in industries which thrive when consumer confidence is high will take a hit during harder times, or they may even go out of business. Consumer Cyclical stocks are a good example of stocks to avoid in a recession… even though many brokers still buy them for your portfolio and lose money on them…

Fortunately when you’re aware of the macro situation then you’re able to pick value stocks which are long-lasting. Stocks which do NOT crash 12 months later

But let me reveal one of the secrets I use when researching stocks…

The “transfer secret” that turns around an under-performing company. Look out for this news…

In the early 1980’s British Airways were losing money – £140 million/year…

So, British Airways appointed a new chairperson, John King. He had a successful track record of making businesses profitable. Upon taking his new role he decided to restructure the entire business.

His plan saw him axe 22,000 jobs – including half of the Board – replace older planes with modern jets and he axed the unprofitable routes.

The result? By 1989, the airline was making a pre-tax profit of £268m.

Through strong leadership John King managed to turn BA into a profitable business.

Having strong leadership in a company is crucial when investing, and it’s right at the top of my list when picking stocks to invest in…

So here’s something you might want to look for:

Let’s say that your stock analysis shows a company is under-performing, yet you hear that a new CEO is coming in…

This person has an excellent track record of turning around under-performing companies. Therefore, there’s a high probability that the new CEO will turn around the financial performance of their new company.

This means the stock price is very likely to rise in the near future. So knowing there’s going to be a management team change, this might be an early buy signal for you.

But when it comes down to picking stocks, there are several factors you need to consider. Factors such as;

– Pick stocks like a billionaire. Ordinary investors, on limited budgets, are successfully copying this. No need to be an investing genius

– How a simple $100 investing tweak can increase your retirement pot by a whopping $210,000. And even DOUBLE again. Amazing!

– The great ‘Stop Loss’ hoax. They keep your investment safe, right? Not always. Here’s when they cost you money

– The market meltdown survival secret. Other investors see 30-40% losses. You use this “sailing secret” to safeguard your stocks

– The sell-off that’s a false flag of a company’s performance. This “Honest mistake” sends you a buy signal

– The only time you should use a high risk/high return strategy – and still play it safe

– Pick ‘under-the-radar’ winners with the “Tesla secret”. Early tell-tale sign to look out for

– The most important investment you’ll ever make: not a stock, bond or fund. This legendary investor swears by it

– A clever way to spot a recession before other investors. You escape with a profitable portfolio. While others take a huge hit…

– The investing nightmare that forced portfolio owners to wait 23 years – yes 23 years – to break even. Shocking! Don’t be caught out by this repeating pattern…

Warning: When you should never ever buy bonds…

– Returns of 8,862%? Yes absolutely. Not crypto. However, you have to use this unusual strategy…

– Investor’s worst enemy? Not an under-performing stock, market crash, dishonest broker or rip-off fees. This silent enemy is poised to wipe out unwary investors

– The Great Depression was a one-off, right? Perhaps not. Keep an eye on this trade indicator. It plummeted 65% in the 1930’s…

– Ripped-off with expensive fees? Under-performing portfolio? Dud stock picks? In-depth analysis of an individual stock. Copy this to spot more winners while playing it safe

– And much, MUCH more…

However let’s consider one of the main mistakes I see both experienced and new investors making, and it concerns dividend investing

The problem with dividend investing

It’s all too easy to get seduced into investing in a stock promising a high dividend payment

We see the rewards being promised and we mentally start spending the dividend. That luxury family holiday to white sandy beaches… Skiing in Colorado… a down payment for a condo… The new luxury car… Paying for a child’s university education… Or donating to worthy causes…

That’s all well and good, but choosing stocks just on a high dividend is a terrible idea!

Here’s why…

Sometimes a company will offer a higher dividend than their competitors. When a company does this, it’s to attract more investment. Perhaps they’re doing this because they have a liquidity problem. Perhaps they have a cash flow problem. Perhaps their sales are falling

When a company offers a higher dividend, it might be OK for the short-term; but long-term this strategy is not successful.

That’s because the company is paying out more capital from its profits, whereas this capital could have been used more wisely. Such as stock buy backs. This would make their existing stocks more valuable…

Another thing the company could have used the capital for is Research and Development (R&D). This would help a company to stay at the forefront of their industry and maintain or grow their market share by introducing new products

When a company doesn’t invest enough into research and development they could face challenges. They risk stagnating and being overtaken by their rivals

Of course, it depends on the industry – think of a boring product such as steel bolts, there’s always going to be a demand for steel bolts! The technology doesn’t change.

But if a company is in the fast-moving tech and pharmaceutical industries, it needs to be constantly innovating and bringing new products to market. That’s why they need a healthy R&D budget (Research & Development). If too much money is being paid out as a dividend, not enough money will go into R&D.

This is a BIG problem and the investor won’t even realise until it’s too late….

Something else the dividend payment could have been used for is marketing and sales. This would help fuel a company’s growth so it maintains and increases market share

Yet another thing the dividend money could have been spent on is refurbing existing factories. This way production is stable and there are fewer breakdowns. This keeps the product quality high and the workforce remains motivated.

So as you can see, paying out a high dividend is not always the best indicator of a wining stock. It can be a short-term lure.

That’s why you need to consider all the metrics that reveals a company’s true position – not just if a high dividend is being paid out…

This way you help to eliminate any guesswork or gambling with your choices of stock.

So what other factors should an investor consider when choosing dividend stocks?