How to Scotch Risk
and Rocket Profits
Worldwide ETFs Portfolio & New Timing Test
6.7 years June 21, 2002-February 27, 2009
Weekly--Hypothetical
See Comments below
It is pretty easy to scotch the risk. Just test different timing methods till you find one (or more) that does the job.
Here is one: The blue line above. Note the protracted flat-line areas. During those periods, the system is out of the market, in cash. The other curves above are two ways of the applying the current Worldwide ETFs system that some of you use regularly.
The method is simplicity itself. Calculate a moving average of prices. When it is rising, buy. When it is falling, sell and go to cash.
Its major virtue is in bad bear markets like the current one. it keeps you safe and profitable. A celebratory +200% beats a heart pounding -20% over six years by a long shot.
But you can see how it also slaughters superior positiive returns as well. Something needs to be done about that. Leverage (a bad word these days) can provide a soluton. Here' how . . .
Back
| Subscribe
|
|
©
2009 The 2000 Corporation.
All Rights Reserved.
| |
