Monday, March 2, 2015

Market timing

In general, market timing is just a prediction. When the guess is educated, it has more chance to materialize. If it is 100% certain, there will be no poor folks by spending $10 in my book the Art of Investing.

I expect a mild year in 2015 as it is a pre-election year. Statistics will confirm it. However, we have a record-high margin debt. It worries me and by statistics the year after usually do not do well (actually last year was also the record-high year).

I have a simple technique to exit before the market plunges. It worked well for the last two major plunges. It will work but it may not give us the ample time to prepare as the last two. It will not spot the peak but would reduce further losses

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