Building Wealth Editor's note: Today, we want to share an issue from Marc Chaikin.
Marc started on Wall Street as an analyst more than 50 years ago. During his time, Marc created proprietary stock indicators – like the industry-standard "Chaikin Money Flow" – that are used by the biggest Wall Street firms and traders all over the world.
A decade ago, Marc decided to help teach everyday investors how to do as well as the "pros" on Wall Street. And today, he's sharing one of the first lessons he learned on Wall Street...
"You're not really going to only rely on the firm's research, are you?"
It was 1966. I (Marc Chaikin) had just landed a position as a broker. And at the time, I really did think my own firm's research would be plenty for me and my clients.
A member of the "old guard" had 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... one that completely transformed my approach to helping investors.
Let me explain...
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 pioneering 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.
The day of that conversation, I realized my mentor 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 have 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 what a monumental task this was. You'd have to be a little crazy to even pursue it.
I didn't realize where I was headed, back in the 1960s... 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. And its main competitor, Thomson Reuters, did too.
I made finding the best data into my life's goal... And just as important, 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 saw 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 those who aren't Wall Street elites.
Together, this set of tools is called the Power Gauge. And I poured everything I've learned over my more than 50 years in finance into it.
I believe you'll come to agree that it's the best data available to individual investors. I'm looking forward to sharing it with you.
Good investing,
Marc Chaikin
Editor's note: Marc's system recently triggered a market timing indicator that has only appeared a few times in the past 72 years. Earlier this week, Marc explained exactly why today's volatility is creating a momentous shift in the financial market and how you can make big gains. Click here to for all the details.