What Every Investor Needs in This Type of Market

Editor's note: It's a mistake to put all your eggs in one basket as an investor. And according to Marc Chaikin, founder of our corporate affiliate Chaikin Analytics, it's an even bigger mistake to only rely on one source of data. In this updated piece from the free daily Chaikin PowerFeed e-letter – which we last shared in DailyWealth in May 2021 – Marc shares how vital it is to have an "information edge" at your disposal today...

"You're not really going to only rely on the firm's research, are you?"

It was 1966. I had just landed a position as a broker on Wall Street. And at the time, I really did think my own firm's research would be more than enough for me and my clients.

But then, a member of the "old guard" pulled me aside to tell me different...

"Listen, you'll have to learn this on your own. But there's someone I think you should know about."

It might sound like a random piece of advice. But it was actually a life-changing introduction. And as I'll explain, it completely transformed my approach to helping investors.

It started when my colleague introduced me to George Chestnutt's financial writing. I'm guessing you haven't heard of Chestnutt. But his work was groundbreaking at the time.

He used math to find the strongest industry groups – and the strongest stocks in those groups.

That made Chestnutt an outsider for sure. Back then, nearly everyone was looking at a smattering of fundamentals. Then, they'd assemble an interesting story around those few bullet points, and that was it.

The best storytellers turned out to be talented brokers. That is, they were talented at getting their clients to buy.

Great for them... not so great for their clients.

After talking with my mentor that day, I realized he was right. I needed more than just stories.

My clients deserved better. Not only that... but to be able to really sell, I knew I'd need to have data to back up my claims.

So I did the most reasonable thing... I signed up for Chestnutt's newsletter service.

Chestnutt's work was my way of accessing the best data available at the time. And I knew that I wanted the best data available on my side.

Here's the thing, though. To get the best data, you need to go the extra mile...

Chestnutt was a bit out there compared with most analysts at the time. The guy spent his time meticulously tracking the major industries trading on Wall Street. He did a lot of it by hand. And he did the rest with early calculators.

Those of us who were around back then know that was a monumental task. You'd have to be a little crazy to even pursue it.

I didn't realize where I was headed, back in the '60s – not at first. But once I looked outside my own firm, I started to follow Chestnutt's path. My life's work became collecting data, parsing it, and using it to make evidence-based investing decisions.

I've been very fortunate and successful at it.

Bloomberg built my systems into its world-famous trading terminals. So did its main competitor Refinitiv (previously Thomson Reuters).

I made finding the best data my life's goal. And just as important, I wanted to help folks by performing the best analysis on it.

I've found it deeply rewarding. And I'm passionate about sharing it. That's because the best data gives you an edge as an investor that nothing else can.

I saw firsthand exactly how important this was after the financial crisis in 2008...

I watched the little guy get creamed by Wall Street. So my focus shifted yet again.

I developed a set of tools for individual investors. They're specifically designed to turn trading and investing into a fair fight for people who aren't Wall Street elites.

Together, this set of tools is called the Power Gauge. I've poured everything I've learned over my 50-plus years in finance into it.

And the thing is... I'm seeing something big in the data today. In fact, it's the kind of market event that has a nasty habit of catching individual investors off guard.

So now, more than ever... you need good data. It's essential in today's market conditions.

That's why I recently went on camera to deliver an urgent message. A rare signal just flashed that could cause a massive shift in the market. And here at Chaikin Analytics, we're tracking it with 100% accuracy in our Power Gauge system.

I outlined a strategy that could help you beat the S&P 500 Index and the "Magnificent Seven" tech stocks for years to come. So don't worry, you won't get left in the dark.

If you missed this free presentation, that's OK. You can still watch a replay with all the details right here.

Good investing,

Marc Chaikin

Editor's note: Last Wednesday, Marc stepped forward to share his No. 1 stock-investing strategy for the first time ever. It has a history of outperforming the rest of the S&P 500... and thriving in financial environments like we're in now. In fact, based on the unusual signal Marc's seeing today, this little-known technique could beat the market fourfold over the coming year... Click here to watch a replay of this conversation.

Further Reading

Hoarding cash might help you sleep better at night – but it won't grow your retirement nest egg. The easiest way to build your wealth is by putting your hard-earned money to work in the stock market. Here's why you can't afford to stay on the sidelines... Read more here.

"The biggest investing returns come to those with patience," Sean Michael Cummings writes. You don't need to invest dangerously to make money. The magic of compounding will help your portfolio in the long term – and it might even take less time than you think... Learn more here.