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Sy Harding
www.streetsmartreport.com |
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From: Asset Management Research Corp. |
Information on market-timing and our Market-Timing Strategy:
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We have been called "the unknown advisory service that beats the big names! We've been quietly outperforming them for 21 years. The reason is that while the 'big names' spend most of their time out on the interview and seminar circuits promoting themselves, we keep our nose to the grindstone, working on what our subscribers pay us to work on - constant analysis and research of the markets. Two strategies: (Click on this link for our 'Seasonal Timing Strategy'). Our Market-Timing Strategy: We have been consistently ranked in the Top 10 Market Timers in the U.S. by Timer Digest since 1990. |
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Sy Harding: 1990:
# 2 Stock Market Timer in
the U.S. |
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Sy Harding:
What have we done
lately?
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| MORE ABOUT US: We are now in our 22 nd year (2009) of providing market research to professionals and serious investors. |
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Our research is available as The Street Smart Report
Online. |
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From 1962 to 1982, the market had numerous
rallies and corrections of 25% to 45% for market timers
to take advantage of. But for buy & hold investors
the Dow gained just 43 points (5%) in 20 years. Yes,
thats only 0.25% per year. See chart at left.
With such little upside, yet hit by numerous 25% to 45% declines, virtually all buy & hold investors gave up on the strategy, usually with large losses at one of the correction lows. |
| Market timers,
however, thrived. Those 25% to 45% corrections
and rallies provided wonderful
opportunities from both up and down markets. Buy &
hold was ridiculed. Market timing was king. Buy & hold investing was also out of favor for the first 12 years of the recent long bull market. Again for good reason; Serious corrections in 1981, 1983, a crash in 1987, and a bear market in 1990. |
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However, thanks to the unusually
one-sided bull market
from 1995 through 1999, Wall
Street was again able to convince investors that a buy &
hold strategy is a viable strategy. As usual, it was not, particularly for the Nasdaq, which
in 3 years plunged 77%. |
THE MARKET ALWAYS COMES BACK? Brokerage firms say "the market always comes back", without pointing out that they dont always come back within an investor's lifetime. It took 26 years after the 1929 crash, until 1955, for the market to come back. Ten years later, in 1965, the Dow hit 1000 for the first time. It then declined 35%, and it was 16 years, in 1981, before it came back to 1000 and began to exceed that level. After the market top in 2000, it took 7 years for the Dow and S&P 500 to return to their levels of 2000. (As shown above the Nasdaq still has not). That's a total of 49 years out of the last 77 years that buy and hold investors would have been waiting for the market to 'come back'. No wonder buy & hold is ridiculed by experienced investors. By the way, it isn't even the same stocks that come back. Many leading stocks in one bull market are nowhere to be found in the next. That's because the Dow and S&P 500, which supposedly prove that the market always comes back, are constantly undergoing changes that make that claim absolutely silly. As stocks within the indexes falter, they are replaced with newer, stronger stocks that more accurately represent the economy at the time. For instance, 43% of the stocks that were in the Dow 10 years ago no longer are in that index today. In the meantime, since 1900 there have been 29 bear markets, or one on average of every 3.4 years, with declines that averaged 31.2%. The 9 worst averaged declines of 49.1%, (one of those monsters on average of every 10 years). By definition a buy & hold investor is guaranteed to suffer every one of them. Our goal is to help you be street smart! You'll never buy low and sell high listening to brokerage firm and mutual fund spokesmen, and the media that kowtows to them! Let our research and market timing help you continue to make gains, but also protect your assets from the periodic losses that buy & hold investors are guaranteed to suffer. |
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