My latest No Load Fund/ETF Tracker has been posted at:
http://www.successful-investment.com/newsletter-archive.php
Wild swings in world markets caused the Fed to implement a 75 basis points surprise cut in interest rates. Some price stabilization resulted but the major trend is still down.
Our Trend Tracking Index (TTI) for domestic funds/ETFs moved to -0.61% below its long-term trend line (red), and therefore into bear territory, as the chart below shows:
The international index dropped to -8.31% below its own trend line, keeping us in a sell mode for that arena.
For more details, and the latest market commentary, as well as the updated No load Fund/ETF StatSheet, please see the above link.
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Comments 2
Credit default swaps represent a chilling reality but we should not be mislead by the notional amount which is about 9 times the size of the US debt. Off-setting mechanisms probably reduce the problem to 10 % of the total. Nonetheless, noboy can predict the future, trend following and trailing stops remain the only viable alternative.
Anonymous,
I agree. Especially in uncertain times, such as we are facing right now, any investment approach that will get you on the sidelines is worthwhile. Keep in mind that, when using trend tracking, we never sell at the top nor do we ever buy at the bottom. We usually act within 10% of either. Why? Because only with hindsight will we know when either has occurred.
Ulli…