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A Dismal Decade? No Way With Market Cycle Investing |
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Submitted by The Investment Shadow
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From the end of 1999 through the end of 2009, all of the popular Wall Street market performance measurement tools were in the red. The average bloodletting level of the DJIA, the S & P 500, and the NASDAQ was a disturbing-to-some minus nineteen percent.
The Media dubbed it "The Dismal Decade".
Most of the investment community was either open-mouthed in shock or strident in blame about the somethings or someones who must have been responsible for such horrific performance. Never again they swore to their clients--- without ever a hint that they might themselves have been the problem.
It was't long before the Wizards of Wall Street announced that they had studied the situation, and readied their sales minions to switch the shattered investment public into yet another fail proof (fool-magnet?) portfolio of hedges, gimmicks, signal responders, and panaceas for whatever the new decade would bring.
Once again they attempted to debug the market cycle and create an upward only future for the masses. But the markets weren't broken, just the market shakers. Your portfolio could have been up in market value--- and not by just a little for the "dismal decade".
These are the same geniuses that created the dotcom bubble by cramming valueless securities and speculative IPOs down your throats. They are the same charlatans who created the derivative markets and fraudulently hid their gaming devices in innocent looking rolls of tissue paper.
Wall Street thrives on the boom and bust scenario--- because it doesn't really matter to them how many of you win or lose. The evidence is clear; a boring-but-winning approach has been out there (and ignored) for four equally productive decades. The investment gods are outraged!
The past decade was a fabulous decade for old-fashioned value investors, particularly those with a reasonable selling discipline in their methodology!
It was a fabulous decade for those who understood that quality, diversification, and income generation are principles as opposed to media placating buzzwords.
It was a fabulous decade for those investors who were able to see over, beyond, and through artificial time constraints to find the long-term opportunities within every beautiful market cycle undulation. There were plenty of gyrations to gyrate to if you only knew how.
Investing is no longer a passive enterprise; and it never really was. If you can't manage your portfolio throughout the market cycle, without succumbing either to greed, to panic, or to artificial and complicated hedging strategies, just stop. Right now. Listen and learn something old.
The only market cycle hedges needed are quality, diversification, and income--- all classically defined. Throw in some disciplined selection and selling guidelines, a cost-based asset allocation formula, and a non-calendar year perspective and success will follow--- cyclically.
You may miss a speculative spike or two (i.e., bubbles), but in the long run, Market Cycle Investment Management (MCIM) is a makes sense methodology for long run investment success.
You just can't replace market cycle reality with calendar year gimmickry. Do better. Attend a FREE MCIM webinar.
Change is good.
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