Quote of the day: How not to book a 50% gain…

A relatively new client — one with whom we’ve yet to experience a true down market — asked me yesterday how we’d handle things when the market experiences its next big selloff. I love such questions, for two reasons. One: they affirm for me that my client understands the nature of things; i.e., that stocks will forever experience draw downs and bear markets. And two: they give me the opportunity to outline the ills of market timing for long-term investors.

I explained that we’d maintain our equity/fixed income mix which we previously determined — and confirmed yesterday — was, for him, an emotionally-palatable position. We then discussed how we meld fundamental and technical analyses to determine what we believe to be the most prudent sector and regional equity mix. As the cycle evolves and the data offer their signals (dictating whether our tilt/bias is toward cyclical vs defensive sectors), our sector allocation evolves as well.

Again, the notion that the long-term investor can or should attempt to play the price swings is a dangerous notion indeed — as I illustrated with this chart in last week’s video:   click to enlarge…

And as Chris Ciovacco stated in his weekly presentation:

It is not possible to ever book a 50% to 80% gain if we over-trade and overmanage during a strong bullish trend…

Share:

Recieve Between the Lines Posts to your Inbox

Sign up for lorem ipsum delores sin.

We care about the protection of your data. Read our Privacy Policy.
vulkan vegas, vulkan casino, vulkan vegas casino, vulkan vegas login, vulkan vegas deutschland, vulkan vegas bonus code, vulkan vegas promo code, vulkan vegas österreich, vulkan vegas erfahrung, vulkan vegas bonus code 50 freispiele, 1win, 1 win, 1win az, 1win giriş, 1win aviator, 1 win az, 1win azerbaycan, 1win yukle, pin up, pinup, pin up casino, pin-up, pinup az, pin-up casino giriş, pin-up casino, pin-up kazino, pin up azerbaycan, pin up az, mostbet, mostbet uz, mostbet skachat, mostbet apk, mostbet uz kirish, mostbet online, mostbet casino, mostbet o'ynash, mostbet uz online, most bet, mostbet, mostbet az, mostbet giriş, mostbet yukle, mostbet indir, mostbet aviator, mostbet casino, mostbet azerbaycan, mostbet yükle, mostbet qeydiyyat