Jim Goodman's Psycle
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What is THE RIGHT SIDE OF THE PSYCLE s.m.?
As the TV commercial says, if you've ever noticed how people seem nervous/fearful near bottoms, and great and excited
near tops of all investments (remember recent crazes...video games, precious metals, cable TV, energy investments?),
you've probably come to realize that there are cycles of human behavior in investments
and in the economic and financial world. By studying historical data, we have found that most events in history
have followed a simple, consistent cycle pattern, which is
represented by the chart of "the PSCYLE"s.m.
How does "the PSYCLE" s.m. work?
Each phase or stage in the cycle is accompanied by:
(1) A certain type of price action in the investment
(2) Media treatment and news items about the investment
(3) Opinions and predictions about the future of the investment
Once we determine where any type of investment or concept is in its PSYCLE s.m., we can
take advantage of its probable future with our money. The idea, ofcourse, is to get into ideas before
they rise in price.
In the process, since we eliminate most of what the "masses" base their investment decisions on, we have not only
simplified the investment experience, we remove negative attitudes, false beliefs,
and complications by replacing them with positive actions, we have a very good chance of avoiding the most commonly
made mistakes and risks. It is a successful philosophy....a way of life....intended to lead to improved results and
constant opportunities.
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