Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
Silver Outlook Is 'Excellent' - 23rd July 19
Why The Coming Silver Rally Might Be The Greatest - 23rd July 19
We Are in for Decades of Ultra-Loose Monetary Policy - 23rd July 19
Gold & Gold GDX Stocks Ripping. What’s Next? - 23rd July 19
Stock Market Breadth Warning Signs for the Stock Market’s Rally? - 23rd July 19
U.S. Recession Watch: The Six-Cycle Forecast - 23rd July 19
US Dollar Index tightly wound between: US Bond Yields down on safety flows - 23rd July 19
Stocks Bull or Bear? The Market’s Message - 23rd July 19
This Dividend Aristocrat Is Leading the 5G Revolution - 22nd July 19
What the World Doesn’t Need Now is Lower Interest Rates - 22nd July 19
My Biggest 'Fear' For Silver - 22nd July 19
Reasons to Buy Pre-Owned Luxury Car from a Certified Dealer - 22nd July 19
Stock Market Increasing Technical Weakness - 22nd July 19
What Could The Next Gold Rally Look Like? - 22nd July 19
Stock Markets Setting Up For A Volatility Explosion – Are You Ready? - 22nd July 19
Anatomy of an Impulse Move in Gold and Silver Precious Metals - 22nd July 19
What you Really need to Know about the Stock Market - 22nd July 19
Has Next UK Financial Crisis Just Started? Bank Accounts Being Frozen - 21st July 19
Silver to Continue Lagging Gold, Will Struggle to Overcome $17 - 21st July 19
What’s With all the Weird Weather?  - 21st July 19
Halifax Stopping Customers Withdrawing Funds Online - UK Brexit Banking Crisis Starting? - 21st July 19
US House Prices Trend Forecast 2019 to 2021 - 20th July 19
MICROSOFT Cortana, Azure AI Platform Machine Intelligence Stock Investing Video - 20th July 19
Africa Rising – Population Explosion, Geopolitical and Economic Consquences - 20th July 19
Gold Mining Stocks Q2’19 Results Analysis - 20th July 19
This Is Your Last Chance to Dump Netflix Stock - 19th July 19
Gold and US Stock Mid Term Election and Decade Cycles - 19th July 19
Precious Metals Big Picture, as Silver Gets on its Horse - 19th July 19
This Technology Everyone Laughed Off Is Quietly Changing the World - 19th July 19
Green Tech Stocks To Watch - 19th July 19
Double Top In Transportation and Metals Breakout Are Key Stock Market Topping Signals - 18th July 19
AI Machine Learning PC Custom Build Specs for £2,500 - Scan Computers 3SX - 18th July 19
The Best “Pick-and-Shovel” Play for the Online Grocery Boom - 18th July 19
Is the Stock Market Rally Floating on Thin Air? - 18th July 19
Biotech Stocks With Near Term Catalysts - 18th July 19
SPX Consolidating, GBP and CAD Could be in Focus - 18th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

How to Invest for Just Half the Year And Beat The Stock Market

InvestorEducation / Learning to Invest Oct 14, 2010 - 10:46 AM GMT

By: DailyWealth

InvestorEducation

Best Financial Markets Analysis ArticleDr. Steve Sjuggerud writes: It's crazy, but true…

You can invest for just half the year and take the other half off… and beat the market.

It sounds crazy, but it's worked extremely well over the last 60 years.



Let me explain…

Down in my office, we're putting the finishing touches on an advanced, systematic way to safely invest in stocks and commodities. It's called True Wealth Systems.

Computer and statistics expert Richard Smith – one of the Ph.Ds on the
True Wealth Systems team – tested this particular simple system:

You own stocks for the six months starting October 31. And you don't own them for the six months starting May 1.

That's it.

Simple... but powerful…

Out of 60 trades, 46 were winners and 14 were losers, for a winning percentage of 77%. The average gain for those trades is about 7% in six months (not including dividends).

Astoundingly, that's better than the market's 12-month compound annual gain over those 60 years. Said simply, you can beat the market's 12-month return with just six months' investing. (We didn't count transaction costs, but we didn't count any interest on our cash for each half-year out of the market, either.)

Past performance is no guarantee of future results, of course. But the weight of the evidence is stunning… One academic study on this phenomenon shows it's true over time in 36 out of 37 countries tested.

Richard dialed it in even deeper for us…

He found that most of the gains come between the end of October and early January (after the January Effect - a general increase in stock prices in the month of January)… And the winning percentage is higher, too.

In hindsight, the optimal trade was October 26th to January 10th. The average gain was 5.7%… and there were only five losing years. (Richard used a 9% stop-loss on this as well.)

No guarantees about the future, of course. But the history is powerful… Richard adds, "Even taking this trade back to 1920 has strong results … Using a 15% stop, it's been profitable 83% of the time (only had 14 losing years) and made 5.9% profit, on average."

Why should this simple system work? Nobody knows for sure. I think that's a good thing. If everyone knew WHY it worked, it WOULDN'T work.

Want to take half the year off, and still beat the stock market's return? Then put on the Halloween Trade.

I don't blame you for being skeptical of this type of trade. I'm typically skeptical of these sorts of timing systems. It sounds "too easy." But the historical results are extraordinary… so it's worth paying attention to them.

At the very least, you can add one "Halloween Trade" to your portfolio… maybe a double-long stock index ETF (like SSO) as your Halloween Trade position.

Another alternative is Richard's October to January trade… You capture most of the gains, with a higher winning percentage, and you're in the trade for just two-and-a-half months.

Something to think about this Halloween…

Good investing,

Steve

P.S. To see the actual results of each trade, click here.

http://www.dailywealth.com

The DailyWealth Investment Philosophy: In a nutshell, my investment philosophy is this: Buy things of extraordinary value at a time when nobody else wants them. Then sell when people are willing to pay any price. You see, at DailyWealth, we believe most investors take way too much risk. Our mission is to show you how to avoid risky investments, and how to avoid what the average investor is doing. I believe that you can make a lot of money – and do it safely – by simply doing the opposite of what is most popular.

Customer Service: 1-888-261-2693 – Copyright 2010 Stansberry & Associates Investment Research. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This e-letter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Stansberry & Associates Investment Research, LLC. 1217 Saint Paul Street, Baltimore MD 21202

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Daily Wealth Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules