The crazy stock market volatility to tear to pieces the confidence of investors. Now some people think it is time to accept the reality of chaos, and to take a more active trading strategy.
“Investment Trends” (based on market and technical analysis stock trading) advocates that this investment will not only help investors to tap the volatile market trends, but also to avoid the stock down a huge loss.
Currently, the market capacity of U.S. economic recovery and growing concerns about future consumer spending, this strategy is to win more and more investors of all ages.
However, the trend of investment is highly controversial. Different from traditional investment philosophy, the traditional investment philosophy that long-term investment in the market, rather than short-term speculative investors can bring the greatest chance of success.
On the trend of investors buy and hold investment philosophy is based on the fundamentals ─ ─ selected varieties and hold the stock for several months or several years ─ ─ In today’s market, no place, would only invite failure end.
“You have to know what playing the game, your opponent is a group of people do not eat shark spit the bones.” Texas Kenjol Capital Management, said Kenny Landgraf, president, “you may believe that buy and hold investment philosophy, but market, some big players do not believe. ”
Landgraf using a model developed by the company itself to decide when to enter the market, and through the sale of exchange ETF to operate.
Until mid-July 2010, the company is in full operational status positions, they are in the middle of June to re-enter the market. Landgraf introduced the trends of the biggest advantages of investment to avoid heavy losses. “(Full position at the beginning of investment in), you will always tend to a more defensive position, until the choice to leave.”
Trends in the performance of investment strategies to their own shows in the most difficult market environment can be effective.
August 2008, Landgraf notice Sector Rotation Portfolio ─ ─ The company’s total U.S. stock products ─ ─ customers delisting of the portfolio to be liquidated, and later by the “one or two failed to enter the market” until March 12, 2009 until complete regression.
This investment strategy allows the portfolio for two years 2008 and 2009, the annualized return on investment to achieve a positive return of 1.5% over the same period the Standard & Poor’s 500 Index (Standard & Poor’s 50) was down 11%
In addition, the investment research Morningstar Inc. To provide the data show that during this period, a total of 2,301 U.S. stock mutual funds only, only 63 Zhineng achieve positive returns, only less than 3% of GDP.
Some professional stock mutual funds took advantage of trends in investment philosophy.
Morningstar data show Stadion Managed Portfolio Fund in 2008 lost only 5.8%. The fund invests in a series of ETF, in November 2007 out of the market until April 2009 until mid-to full re-investment state.
Now, the Fund also completely emptied the stock, and from early May been so.
Fund management company Stadion Money Management’s chief investment officer Brad Thompson said that their method can provide investors with “a kind of stock market experience much easier.”
However, despite the Stadion company and the company’s investment strategy Kenjol have successfully avoided the worst moment in 2008, but they also missed the second year in a large part of the market recovery.
Kenjol’s “plate rotation” net portfolio growth in 2009 was 24.3% compared to the Standard & Poor’s 500 index rose 26.5%, while the Stadion company’s annual return is only a mere 2.7%.
Kenjol company did not provide earnings since 2010, but the company’s funds Stadion July 15 at the net growth of 2.5% over S & P 500 index by three percentage points.
Wayne Copelin Copelin Financial Texas, founder of the company, he said that the bear market over the past two years has him convinced that the buy and hold strategy is no longer suitable for today’s stock market.
“Over the years, asset managers have been in promoting the ‘Yu Qi predict market movements, as I believe the time’, but we finally found the reason they say, will keep everyone Shizhong remain fully invested they can always maintain Youqian earn, “the test, Pring says.