Regardless of the constantly disruptive behavior we see almost daily in our domestic political economy, as your investment advisor I have now instituted a very reliable and flexible "quantitative" investment strategy that will almost certainly ensure our intermediate and long-term investment success - coinciding with risk-averse strategies to protect our money.
For most of our Fidelity accounts, this investment strategy will involve taking 10% to 15% positions in select ETFs (or mutual funds) and/or 3-4% positions in very select individual stocks that have begun a new intermediate-term upward momentum trend.
For technicians, this reliable confirmation buy signal refers to the "weekly price closing above the 13-week moving average (with strong trading volume)."
The buy signal described above has been verifiably back-tested for very positive historical growth results over many past years.
The actual verified performance results has shown an 80-85% success rate over the 8-32 weeks following the investment buy signal trigger.
After the typical 8-32 week upward trending performance period, if the price of the investment is also hitting its own historic price highs, we will generally see a short pullback, or "consolidation" period, followed by a price continuation higher.
Then, we will hold the investment(s) through the normal correction period, and stick with said investment until we see the upward trend run out of money flow.
However, to ensure consistent long-term investment profitability, our investment strategy will require some degree of shorter-term investment rotation if any of our owned investments falter sooner than expected.
To minimize potential losses, all our investments will be kept on a short leash, if for some reason any of our investments do not continue their predicted upward trajectory.
In other words, we will watch closely for our predicted sustained long-term upward trend, hold those investments until the uptrend reverses, then, when appropriate, liquidate non-performing investments.
A practical shift in "new decade" investment choices
Many of you probably consider our investment service to be focused primarily (or wholly) on the stock markets. Although largely true, this assumption will be tempered somewhat going forward.
Due to the increasing chaos we are seeing both globally and domestically, it is incumbent upon our investment service to manage your money with an intelligent and sensible risk-aversion - using the most commonly recognized investment vehicles - which may also include investments such as individual bonds and "ETN's" - that simply track the "price" of various commodities such as gold, silver, oil, natural gas, or even lithium.
To be both successfully profitable and risk-averse, be aware that our investment strategy will not favor any one ETF / fund asset class, sector, industry, or commodity. Individual stock selection is more complex, which will be covered at a later time.
We will, though, only invest in high visibility investments that are in sustainable uptrends and endowed with strong trading volume (high liquidity) that looks attractive as a suitable investment for your specific risk tolerance.
In 2019 US stocks were the global asset of choice for the most successful international investors. And, yes, we will continue to follow that trend in 2020 as long as it continues its positive money flow uptrend.
In other words, we will watch closely for any global investment trend changes by tracking big investor money flows - both into and out of specific investment classes, sectors, or world regions.
Fortunately, our new reliable money management strategy described above will tell us what those big investor money flow changes will be - as they unfold.
Financial Media "Noise"
It is important to understand that the investment "noise" we regularly see or read in the financial media is based almost solely on daily performance trends, economic projection marketing, and investment firm sales pitches.
These financial media "touts" have very little idea what is going to happen in one month or longer with the economy or investments in general. Their advice may sound good short-term, but they do not en masse successfully identify longer term investment trends (except when we are already experiencing a long-term bull market in stocks).
In fact, like television and cable in general, so much of the financial media only exists to sell advertising to retail investors who are honest enough with themselves - or "gullible" to financial celebrity idolatry - to admit they want some media guru to help them through the scary game of investing.
Of course, there are some investments trends that one can key on for valid information, such as the Federal Reserve Board's current monetary and interest rate policy - or other identifiable bullish or bearish sentiment indicators such as a weakening dollar or rising oil prices.
As such, it is my professional responsibility to as early as possible (1) identify and follow where the big Wall Street money managers are investing their money and (2) to move money out of the currently unfavored investments of the big Wall Street money managers.
Finally, I will always choose to keep my own solidly multicultural and ethical business values active in the background. But I do understand that my primary job is to grow and protect your financial nest egg so you can enjoy your retirement - and sleep well without worrying about your money.
Thank you for your continued trust and faith in our increasingly informed, ethical and sanely practical money management services.