Summary
In response to subscriber Wayne’s question about investing for the second half with limited capital, Phil outlines: (1) Never guess; (2) Learn to read charts; (3) Buy stocks breaking to new all-time highs above a line of prior tops (Gann’s method). Uses Tesla and the RCA 1923 example (400 by 1929) to illustrate the second-half breakout strategy. Links Gann’s 1923 “Truth of the Stock Tape” to the coming second-half bull market.
Key Claims
- The best entry for stocks is a break to new all-time highs above a line of prior tops. — confidence: high
- RCA went from 400 between 1923 and 1929. — confidence: high
- Gann told all readers to sell everything in late 1928 and early 1929 (year ending in ‘9’). — confidence: high
- The second half of the cycle is typically the most speculative for markets. — confidence: high
- In US stocks, earnings reinvested (not paid as dividends) mean strong trends persist for years. — confidence: high