Igor Cornelsen is a big believer in that following trends in the stock market will not ultimately translate into a return on your investment. He says that there are a lot of financial magazines, websites and financial experts who can tell you what they think the long term trend will be in the markets.
Sticking with a trend when investing is not the best way to make a return says Cornelsen. This is something that he has learned first hand after losing significant sums of money by simply following trends and investing his money based on those trends.
A better way to invest your money is to carefully research a company you plan on investing in and analyze the following metrics. One of the the things you should look for first is how big is the potential for the company to be productive. You should also look at how much potential the firm has to maximize its profits.
Many investors do not understand what productivity means in the investment world. In investment terms productivity is defined as the ability of a product or service to be become more expensive at a future date.
Igor Cornelsen uses the example of gasoline. He says it is forecast supplies of gasoline will dwindle and that the demand will stay the same or increases in the future. So it is safe to assume that the price of gasoline will increase as a result. An investor will say that the productivity of gasoline will increase as time passes.
If you invest in gasoline says Igor Cornelsen, then you will almost always see a return or positive movement in your investment. Real estate is another extremely productive investment. The price of real estate is almost always increasing and hence its productivity is considered to be high.
These are just generalities and there are exceptions to these cases of course. Some real estate may decrease in value over time and surges of supply in gasoline can actually knock down prices.
You should carefully look at the productivity of a good or company before you invest your funds in it. If you are investing in a company, you need to look at how stable and strong they are. If they are unable to bear a major storm or market downturn, then it might be a good idea to invest your money elsewhere.