Dear Investor,

The turmoil in the markets over the past two years led many investors to throw in the towel.  This is certainly not the first time the markets have discouraged investors.  Back in the early 2000’s things were quite similar.  Investors had had their fill of the meltdown in stocks and a nagging recession.  It’s at times like that that the smartest investors realize when it’s time to get back in and take advantage of market conditions. 

The conditions in 2002 led Fredhager.com to predict in early October that this was likely close enough to a market bottom if not “the” market bottom and it was time to get in, not out, of the market. 

Indeed many investors had pretty good returns from the fall of 2002 until the meltdown brought on by the financial crisis of 2007.  But by late 2007 all of those investor gains had evaporated.  Based on the broad averages, many investors were actually worse off in fall 2007 than they were in fall 2002.

Even after a strong market rebound in  2009, the DOW and S&P are barely above where they were in the fall 2002. 

Investors in Fredhager.com’s flagship portfolios A and B have done much better.

In the period of time from our 2002 call to the month end of the most recent month audited data by the Hulbert Financial Digest, Fredhager.com’s Portfolio B has delivered a market trouncing 236% return.  Portfolio A has delivered a solid 66% return over the same period.  While we would have loved to have done even better we are certainly proud to have beaten the benchmark S&P and DOW indices by such a wide margin.  Better yet our subscribers are way ahead of the herd of investors that ponder whether long term investing is dead or whether their 401K’s will ever actually grow.

The DOW’s meager 7% return over nearly 7 years is not good as an ultra-conservative fixed income investment.  But by capturing a 272% or even a “modest” 82% return over the period you could have stayed well ahead of the game and ready for the next leg up.   

Owning the Right Stocks

The 2009 Rally?...Year To Date to August 2009

While the broader markets have done a bit better in 2009, especially since the March lows, the flagship portfolios of Fredhager.com are again outperforming the market.  Portfolio A is up 28.2% and Portfolio B is up 36.4% year to date to August.  Even after a strong move from the March lows, the DOW and the S&P have a meager 1.5% and 6% return respectively in 2009.

As with any market, the key to outperformance continues to be owning the right stocks.

Identifying a Market Shaping Dynamic...Investment Focus

One of the keys to outperforming the market is in understanding that it is always a market of stocks.  Perhaps more important is understanding that the market must reward companies that are delivering even in light of overall conditions.  Something is always working in our investment focus areas and we work hard to identify what it is.  We are not talking about for a week or a month but for the long term. 

One of our key investment focus ideas that has led to success is the trend to mobile digital multimedia.  In a special report we focused on five pillar technology areas critical to the trend.  While not every stock has been a homerun in this historically turbulent market, the outperformers have really made a difference. 

We believe there is something fundamental about our approach.  In fact we feel we don’t even have to be bullish on the market as a whole as we are simply bullish on our stock picks.   

One example is contained in this free report.  When you read the report you begin to recognize how research can identify a stock that need only follow its own path instead of the market. 

Certainly the market as a whole has disappointed investors from 2002 to date.  Despite that, we do believe the market is presenting buying opportunities similar to the fall of 2002.  But at the end of the next seven years, which chart do you want to be looking at? 

Like the last seven years, we would still want to be looking at a chart of our portfolio stocks versus the market.  The key is owning the right stocks.  Better still, we believe by owning the right stocks our subscribers will beat the market by even more over the next few years than they did over the past several.  We are off to a good start to doing just that in 2009.  

A long term focus

With our long term focus investors have benefitted from the stock appreciation enjoyed by some of the greatest market successes in history.  Fredhager.com’s long term investing advisory service has been around long enough to have predicted that Microsoft would have a market cap larger than IBM.  Of course at the time that was considered an outlandish, perhaps even laughable prediction. At the time, IBM had a market cap of $57 billion while Microsoft could boast $14 billion. 

“Chances are better than 75% that some time in the next 5 years the capitalization of Microsoft will exceed that of IBM.”

“If his strategy succeeds, William H. Gates, Chairman of Microsoft, will be the richest man in the world.”

Laughable indeed.  Our subscribers laughed all the way to the bank as Microsoft became a dominant monopoly in PC software.  Our subscribers enjoyed the same stock appreciation in Microsoft shares that led Bill Gates to indeed become the richest man in the world. 

Unlike Mr. Gates, we no longer own Microsoft …but we are excited about the long term appreciation of a company giving Mr. Softy reason to worry about their still solid place in the computing space.

Similarly our call on the post internet bubble let our subscribers know that the eBay share price baby had been thrown out with the internet bath water.  In August 2003 we told our subscribers to expect EBAY shares to double before 2005.  They did.  By using a strategy of Long-Term Equity Anticipation on EBAY, our subscribers pocketed a 2400% profit on the EBAY call. 

While neither of these former portfolio stocks is leading our 2009 rally, by using the long term profits from our historic gains we have already invested in the stocks to lead our subscribers to  today’s market beating performance.

Settling for Lackluster Performance

Today’s market is challenging but you certainly could be enjoying the returns of our flagship portfolios instead of the lackluster multiyear standstill and meager year-to-date performance being delivered by the DOW and S&P indices.  

Simplicity in Action

The Hager System is simplicity in action.  Buy the long term portfolio stocks we feature in our flagship portfolios and combine those selections with the Long Term Equity Anticipation Securities we feature.  

While the Hager System itself is simplicity in action, it's knowing which stocks to put into the system that is key to its success.  That's where the research of the Hager Technology team comes in to bring you clear, confident, money-making picks.  If you would like to know all of what our subscribers know about beating the market, we would warmly welcome your subscription.

Rick Currin
President, Fredhager.com

Performance figures are based upon independently audited reporting available 08/19/08.

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