All about market timing - by Les Masonson
Title: All About Market Timing
Author: Les Masonson
ISBN-10: 0071413316
ISBN-13: 978-0071413312
This book is about timing your investments. First it compared the traditional method: Buy and hold strategy, with the method, trade at certain market timing. This book provide many statistical data on different investment strategy, back testing on the market timing. It covers not only stock, but also mutual funds, ETF (Exchange Traded Funds).
The market timing strategy introduced in this book includes:
- Calendar based investing: best six month (BSM)
- Presidential cycle years analysis
- Use of moving averages with market timing
- Value line 4 percent strategy & Nasdaq composite 6 percent strategy
Quotes from the book:
- bear markets will occur and take away a major percentage or all of your profits every three or four years…
- Usually, the market rises more in the pre-election year than in the election year itself. The election year is the second best of those four years. And in the two years after the election, the market usually does not make much progress.
- Using moving averages properly will enable you to capture approximately 75 percent of the move in each direction. You miss the first part of the move because a moving average is a lagging indicator that shows you what has happened in the past and, if it continues, what the future trend will be.
My notes:
- Investor intelligence advisory sentiment index, this is an indicator
- Another indicator: Index of investor optimism
- Key factors in selecting an index fund: page 77. *
Start: 2010-02-13
Finish: 2010-02-15