Ambush Investing Update 2013!

Ambush Investing Update 2013!

AMBUSH INVESTING AUGUST 2013

       The problem blighting the economic life of Wall Street big shots is not that they can’t time the market.  Their problem is their belief that they can.  In point of fact, no one can time the market except by chance and only for brief periods.

        But while there is no reliable way of predicting which way the market will go there are plenty of transparent measures of what the market is doing now, and if you take your marching orders from the message of today’s market you’ll do quite well.  It’s rather simple:

        Once it is evident that a bull market is under way, you invest heavily.  Further along the bull market’s life (they tend to run eighteen to twenty-four months) you continue to invest but more parsimoniously, and as the market ages you put less and less new money in.

        The same formula applies to bear markets.  When the market crashes, i.e., at the beginning of a bear market, you invest heavily, then as the market starts to improve you continue to invest but more moderately, and when the market finally reaches such heights that people believe a new world order has come, you invest hardly anything at all.

          Bottom line: don’t worry about trying to fathom when the market will turn.  All you need to know is when the market does turn

          A good analogy might be the weather report.  Predicting what the weather will do is still more art than science but any fool can tell whether or not it’s raining or if the sun is shining.