Investing With The Trends


There has been quite a bit of volatility in the markets of late.  On one station you hear that the bull market still has lots of room to run.  On another station the pundits are saying another financial crisis is right around the corner.  If you do not have a strategy in place, it can be very easy to listen to the financial media and their differing pundits.  In our opinion, the worst thing you can do right now is to make a hasty decision with your investments.  Instead, keep to a time-tested, long-term market timing strategy to help you clear up the noise.
You see, the stock market, particularly the Dow Jones Industrial Average has up days, and down days.  Up weeks, and down weeks.  But the serious trends that affect investors portfolios and the economy as a whole have not occurred within a set of days or weeks, but rather the long-term.  Some exceptions exist such as Black Tuesday of 1987, but for the most part, the major-trends occur over a longer period of time.  These are called Primary trends, while the short-term trends are called secondary trends.  Think of those freak warm days that occur in winter.  The long-term season is winter, though there is a brief warm spell.  This does not usually mean you should be jumping into the pool anytime soon.  A good investing strategy will be based upon the long-term trends to protect your investments from going down, and to participate in the profits of a bull market.
Our indicators suggest there may be some room for running, but we are ever watchful of the horizon.  Join our newsletter to see why we think this and hopefully take some of the volatility stress off of your shoulders.

 


 

Latest News

Mark Hulbert of Marketwatch: The Transports have been the stronger of the two benchmarks, and it is widely considered to be a leading economic indicator.  Read the article HERE.

There has been renewed interest in the Dow Theory since Jack Schannep presented his research to the Market Technicians Association that showed Dow Theory produced an excess return of 1.5% per year (from 1953 thru 2011) versus a buy and hold strategy.  His presentation attracted a whole new generation of Dow Theory enthusiasts.   Read the article HERE.

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