Tags: stocks | investing | bet | shares

Bet on the Jockey, Not the Horse

By    |   Friday, 13 July 2012 08:00 AM

JPMorgan announced second-quarter earnings, which will dominate news coverage.

I have listened to 14 different commentators and each person says something different.

I am a professional investor whose dividend income has exceeded my annual living expenses for almost eight years now.

Editor's Note: Small-Town Ohio Accountant Uses Simple Forgotten Secret to Help Investors Pocket Millions

My newsletter, The Dividend Machine, was No. 1 in performance of 19.7 percent, which was top-rated in the low-risk category by Hulbert Financial Digest, a Dow Jones-owned company.

My three-largest holdings in it are at or near 52-week highs.

My point is that I can't assimilate all these various comments. And neither can you — or anyone else.

Here is the good news: you don't have to. Since the financial crisis started, JPMorgan made a profit every quarter and will still turn a profit this quarter despite the loss.

JPMorgan CEO Jamie Dimon is known as the best banker in the world.

Of course, in finance everyone makes mistakes. But overall, the consumer should be assured everything will be fine.

Want proof?

Warren Buffett, the greatest investor ever and who has made over $200 billion investing and personally owns JPMorgan shares for his own account, said this week that he trusts Dimon as much as any banker in the world.

Does it really matter what others (whose combined profits aren't anywhere near $1 billion let alone $200 billion) think?

Editor's Note: Small-Town Ohio Accountant Uses Simple Forgotten Secret to Help Investors Pocket Millions

All this talk about an enormous crash has been premature.

Despite the fact the 10-year Treasury bond is under 1.5 percent, the S&P has been over the 1,312 level intraday for the past 118 of 121 days and will be easily over 1,312 again Friday.

Except for the day of the June jobs report and two days after, the S&P has continued to be over 1,312 intraday.

So when owning a stock or deciding what stocks to own, always pick someone with a great track record and let them do the worrying.

About the Author: Bill Spetrino
Bill Spetrino is a member of the Moneynews Financial Brain Trust. Click Here to read more of his articles. He is also the editor of the Dividend Machine. Discover more by Clicking Here Now.

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Friday, 13 July 2012 08:00 AM
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