Blue Ocean Investment Strategies - 10 Reasons Why Everyone Should Utilize the Long Tail of Investing

id="body">have the index turn back downward for a
Defined within the realm of the statistical Bellprolonged period of time, or a chart will appear
Curve, the long tail would reside in the skinny tailbearish having just broken through a floor of
at the borders. The long tail, in regards to goodsresistance only to turn around and begin another
and services, refers to the evolution away frombullish ascent.
mainstream offerings towards more nicheIn fact, you have seen some of these turnaround
products and services. With the internet drasticallytrends with some of the technical posts that I've
reducing the costs of establishing distributionplaced on my blog in previous months. In fact,
channels, the ability of entrepreneurs to focusthat is why I always state that I never rely solely
more on the longtail sector to fit their customizedon technical indicators to make my decisions. I
needs is gaining increasing appeal.rely only on technical indicators to confirm or
However, almost no one speaks of the longtail ofdispel what my long tail investment strategies tell
investing. To me, longtail investment strategiesme. Of the three types of analysis, fundamental,
are the strategies that do not heavily rely ontechnical and long tail, long tail investment
fundamental or technical analysis, but exploit otherstrategies yield by far the least amount of false
strongly predictive factors to produce not onlynegatives and false positives. That's why I rely on
superior returns to traditional investmentthem so heavily.
strategies but also investment opportunities withThis sentiment will lead to an evolution of longtail
far better risk-reward paradigms than thoseinvestment strategies, and the discovery of more
produced by traditional investment strategies.efficient and better predictive means of making
Here are 10 reasons why the longtail of investinginvestment decisions than even those that already
is the only way to build wealth.exist. Even current longtail investment strategies,
(1) You will never achieve the level of wealth yousuch as those utilized at SmartKnowledgeU(TM)
desire by handing your money over to a largeare constantly evolving as access to reliable
investment firm. The vast majority of privateinformation increases every year. Making decisions
investors hand their money to large institutionsas if you were a fly on the wall of boardrooms is
and allow them to invest their money for them. Ifno longer a fantasy. It is possible, thanks to the
this were truly the best way to achieve financialevolution of the information landscape.
freedom, then almost every one you know would(4) With the growth of blogs and pure information
be ecstatic with their financial consultant. Think ofsites on the web, the stranglehold of global
how many people you know that absolutely raveinvestment myths, including the Modern Portfolio
about their financial consultant.Theory of diversification, will soon be exposed for
The fact that 90% of people you know do notwhat they are - cleverly disguised sales strategies
rave about their financial consultant should tell youposing as investment strategies. Once people
that niche investment strategies, or longtailrealize this, longtail investment strategies will gain
investment strategies, are far superior. The oneswider acceptance, much like acupuncture and
that are happy with the large investment housesherbal medicine eventually gained credibility as
already were independently wealthy before theyhealing regimens in the schools of Western
sought out their help. Think about how manymedicine.
people you know that have ever told you, "I(5) Wider acceptance of alternative, longtail
wasn't wealthy before, but thanks to myinvestment strategies that far outperform those
investment firm, I am wealthy beyond myutilized by global investment firms will happen as
dreams now."word of successes via these strategies spread
(2) Thanks to evolving information technology,throughout the world via the internet. The internet
there are many other means of makingdistribution channel can and will be used to change
investment decisions than just utilizing fundamentalthe mindset of investors.
and technical analysis. Though people have been(6) The Do-It-Yourselfers are Growing - With the
really slow to grasp this, once they do, longtailsuccess of books such as Stephen Covey's "The
investment strategies, like those invented byEight Habit" that emphasize personal accountability
SmartKnowledgeU(TM), will boom. There is noto achieve excellence versus handing control over
doubt that the level of top-notch financial, politicalto someone else, cultural shifts will happen
and corporate information available to the averagewhereby people will seek to seize control over
investor has increased by leaps and bounds withintheir own financial future versus just handing their
the past decade.money to a firm to manage. As this cultural shift
There is a virtual treasure map that was createdhappens, multitudes of people will realize that they
by the flattening of the world over the pastare shorting their returns significantly every single
decade to selecting stocks that are poised toyear by handing their money to global investment
explode. However, because the largest, mosthouses.
powerful investment institutions in the world have(7) The flattening of the world and accessibility to
kept the masses of investors fixated onpreviously inaccessible investment information will
traditional investment techniques such as valueundoubtedly yield an increasing amount of
and fundamental analysis, the longtail ofinvestment strategies that reside in the longtail.
investment strategies is currently much furtherPeople will realize the foolishness of believing in the
behind in its developmental phases than it shouldone investment strategy thrust upon them by
be.global investment houses for the past half of
The best analogy I can use when explaining whycentury as "the only viable and safe way to
people have ignored the long tail of investmentinvest." If the younger generation takes an
strategies is to compare it to the incredibly slowinterest in investing, adding their creativity to the
adoption of Internet Protocol Version 6 (Ipv6) byinvestment arena will result in explosive growth in
the United States. When China started preparingthe longtail of investment strategies. However,
its country for Ipv6 a decade ago, the benefits insince the odds of this occurrence are quite low, a
increased security and its added value propertiesmore gradual shift towards niche investment
in e-commerce were evident even back then.strategies is much more likely.
However, people in the U.S. were comfortable(8) The explosion of social networking sites like
with the lesser Ipv4 so did not take any actionYouTube, MySpace, Friendster, and so forth, will
until the progress and superior internet andamplify the viral marketing of longtail investment
business capabilities of China, Korea, Taiwan, andconcepts. Again, ignorance of longtail investment
Hong Kong finally embarrassed the U.S. enough tostrategies causes fear and hesitancy to use them.
move forward and catch up with Asia.Viral marketing of longtail investment concepts will
I see the same thing happening in the educationalincrease millions of investors' comfort level with
realm of investing. Everyone is comfortable withthese different and unique concepts.
the traditional investment strategies that have(9) People are ultimately interested in returns, no
been propagated for the last several decades somatter how much global investment firms try to
nobody sees a need to move forward evenseparate themselves from their competitors with
though much better strategies exist today. Justsmoke and mirror service claims. All the gratitude
as with Ipv6, the world will eventually realize thatfor luxury box suites at Los Angeles Lakers
the safest and best means of investing moneygames, suites at the Four Seasons Hotel,
reside in the longtail, and they will eventually adoptconferences at world-class golf courses and
these strategies.resorts will quickly wither once people realize how
(3) With so much investor skepticism ofmuch more money they are earning with longtail
corporate integrity sparked by past accountinginvestment strategies.
scandals at Enron, WorldCom, General Motors and(10) Again, because people will readily abandon all
the like, and the current, ongoing backdatingthe perks they get as a preferred client at a
option scandals, investors will increasingly seeklarge investment firm for far superior returns on
alternate means of making investment decisionstheir portfolios, longtail investing will eventually
other than crunching numbers that they feel arereach a critical mass. Eventually the longtail of
untrustworthy. Furthermore, technical analysisinvesting will migrate towards the center and
often yields false positives as well. A chart willbecome the mainstream methods of investing,
show indexes that appear bullish having justthough this may take several decades to occur.
broken through a ceiling of resistance only to