How To Make Short Term Trading Your Long Term Investment Strategy
Sure, there are countless trading tools and information collection/analysis mechanisms that can help you prepare for the wanton unpredictability of markets; and there are tons of opportunity signaling methods, screening techniques, hedging strategies and the like that you can experiment with.
Stocks Hit All Time Highs --- and Your Action Plan Is?
There is no real need for rocket science in investing --- no correlations, standard deviations, coefficients, Alphas, Betas, or Zetas are required. Similarly, passively managed, index derivatives are just a lazy man's way of reinforcing the myth that active management is ineffective.
Always, every time and without exception, the general media has predicted the end of the financial world, financial experts have pointed out the remarkable differences from the last correction, and investors everywhere have been encouraged to take their losses and sit on cash or gold until the smoke clears. Every time, the short sighted fear mongers have been wrong.
IGVSI Eclipses 2007 All Time High --- above 2007 levels since mid-February 2011 --- now up 6.9%; ahead of DOW and S & P by roughly 19%. Market Cycle Investment Management Model Portfolios build upon 18% gain in 2010. S & P 500 and mighty DOW lag the IGVSI, need average of 14% more just to equal 2007 levels.
The Dow, Investment Grade Value Stocks, and Alternative Investments
The S & P 500 contains 165 more stocks than the IGVSI, but less than half are Investment Grade Value Stocks. Although it is more broad based, it is also more speculative, and has not done as well as the DJIA. Still 14.7% below the 2007 high, it would need to gain another 17.2% just to claw back to its 2007 level.
How Much Longer Can This Wall Street Toga Party Last?
Unlike most investment strategies, the Market Cycle Investment Management Methodology includes a selling-for-profit discipline that (incredulously) seems to be a unique investment model. Over the past 40+ years, MCIM users have taken profits during every market upswing and repurchased Investment Grade Value Stocks during every down bubble. Any feel for what the results must have been?
"Hey 'Deep Pockets', what were you doing on October 19th, 1987", the Wall Street Jungle reporter asked? "Well, son, I was gritting my teeth, shaking more than just a little, palms sweaty but placing dozens of individual orders for the best NYSE, dividend-paying, companies --- at prices that nearly everyone thought would drop even further.
IGVSI Rally Continues - Profit Taking Opportunities Take the Spotlight!
The Market Cycle Investment Management model has outperformed the popular investment indices since it was first developed in 1970. It features an approach that embraces market volatility; selects securities using strict quality, diversification, and income standards; and operates under strict disciplines for asset allocation, buying securities, and profit taking.