Winans Investments: Historical Ignorance Can Be Very Costly to Investors!

Nov 30, 2012, 18:06 ET from Winans Investments

NOVATO, Calif., Nov. 30, 2012 /PRNewswire/ -- Ken Winans is a successful investment manager, award-winning author and popular guest on national business radio shows. He gives lectures to large crowds on topics ranging from "Investing in Preferred Stocks" to "Bear Market Investing." In today's uncertain times, his most popular seminar is titled, "History as an Investment Tool."

"Why did the majority of investors, some of the most well educated and technologically advanced in history, mishandle the bull markets and proceeding bear markets in stocks, real estate, bonds and commodities over the last 20 years? Answer: A lack of knowledge about U.S. financial history," Winans proclaims.

See the table below:  While investment returns are common knowledge, volatile bear markets occur much more often than most people realize, thus causing them to commit investing's greatest sin of "buying high & selling low."

Since 1900

Annual Return

% of Time 
Negative Years

Bear Markets

U.S. Common Stocks




U.S. Preferred Stocks




U.S. Silver




U.S. Corporate Bonds




U.S. Homes




Just like memorizing multiplication tables, every investor should remember these figures. In fact, Winans credits much of his firm's (Winans success in navigating today's volatile financial conditions to practically applying history as an important tool for investing.

Winans feels that to be a profitable investor, an investment philosophy must be deeply rooted to the following beliefs:

Assume financial history will repeat itself.
The current economic and investment environment resembles many other times in the past 100 years. The government will use nearly identical fiscal and monetary policies to deal with these conditions. The investing herd frequently repeats the same financial mistakes as past investors on the premise that, "It's different this time!"

There is no single best investment for all economic conditions.
Investment prices generally move in long trends and prices lead most economic and financial data. There is no best investment for all times. Common stocks, REITS, bonds and preferred stocks all have strengths and weaknesses, and can have wide differences in performance in various economic conditions. Investment success also requires a disciplined strategy and a policy for re-balancing the portfolio into cash during bear markets.

Common sense goes a long way in investing and those who ignore history are bound to be future victims of it.

Additional information is available upon request at

SOURCE Winans Investments