Wednesday, June 3, 2015

Market timing

It seems more of the articles are coming predicting the market plunge.

Personally I prefer to prepare it slowly this year and more aggressively next year. Why? I do not recall any market plunges in pre-election years including 2007 which is flat even not including dividends.

2016 is risky amplified by our record margin debt. If it does not happen in 2016, very, very likely it will happen in 2017. Since 2000, we have two market plunges with an average loss of 45%. My simple technique detects both of them in a timely manner (not peaks and bottoms but enough to make a bundle) as described in my book Profit from 2016 Market Crash. It will predict the next one but it may not give us ample of time to prepare as the last two

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