Stock Market System Sense: Technical Analysis Trading vs. the Diversification Myth
The behemoth investment companies like Fidelity Investments continue to pump this legendary myth till they die so as to protect status quo of their age-old investment strategy that relies upon: Diversifying. Does it work?
Recently, Fidelity Investments headlined the following article: “Don’t Give Up on Diversification”. The moral of the article was a warm reminder and exhortation that even though diversification didn’t work last year you shouldn’t give up or even consider other alternative investing options. Doing so means you simply don’t understand it as one of the only real, time honored investment principles. Which is light years behind current stock market system approaches.
Asset allocation in theory combines multiple asset classes that are often unique to one another thereby separating and in turn protecting a portion of assets during market down turns while your other assets suffer losses. In other words, as professional money managers we have to admit that we really don’t know how different asset classes are going to profit or plunge this year or the long term so to hedge our, it’s best to play it safe and spread out your investments so you don’t lose everything.
And though diversity may help you keep your wealth longer, but it won’t make you wealthy. The lame promise of diversity proclaims slightly smaller losses during the bad times and significant loss of gains in good times.
But that theory has failed…especially in recent years.
Sadly, diversifying using buy and hold investing strategies hasn’t worked in recent economic conditions and it’s an outdated way of managing your portfolio. Its a recipe for mediocrity at best and an overall disappointing return of your investments long term.
So, how long can you afford to let economists and financial analysts tell you what they would do if they were you. Do these guys really profit themselves? I took both micro and macro economics that essentially teaches once you lose all your money, why you lost it. Nobody, not me or your broker who cares about your money like you do. The earlier you learn to trade on your own the better.
THEE way to accumulating wealth is not putting your eggs in multiple baskets. Rather, its putting your eggs in one basket, watching it very close…just making sure you have the right basket. TheETF Trend Trading system uses technical analysis trading giving you all the tools so you know what basket is right. After you learn the system it only takes 5-10 minutes per night to average 6% per month.
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
Comments
No comments yet.
Sorry, the comment form is closed at this time.