The Future of Investing: A NEW Diversification Approach

Please Join Me for a Free Live Webinar
Approaching 2015 - Year End Cycles and Strategies for the New Year

Tuesday, November 18 at 6:00 pm eastern
Sign Up Today - Space is Limited

A self-proclaimed investing "newbie" expressed appreciation for Friday's missive and the introduction of some long-term indicators that can indeed help just about anyone "time" the market successfully. This particular reader decided to start following the "golden cross" in an effort to be better prepared the next time the bears come out of hibernation.

While the "golden cross" approach (be in stocks when the S&P 500's 50-day moving average is above its 200-day moving average and be in cash when the 50-day is below the 200-day) isn't the best indicator on the planet and can cause some heartache when in whipsaw mode, it will keep investors out of harm's way during periods such as the Tech Bubble Bear of 2000-02 or Credit Crisis Bear of 2008.

In addition, this incredibly simple indicator is available free to just about anyone with an internet connection.

S&P 500 and the "Golden Cross"

View Larger Image

Another great comment came from a Seeking Alpha contributor, who happens to be a full-time investor. The reader suggested that combining some of the indicators mentioned might be good idea.

    "Thanks for one of the best articles I've ever read tellingly refuting the commonly accepted myth of 'time not timing'... If one were to combine the 2 indicators you mention with all the other important back-tested leading indicators the evidence one can outperform the general market with astute timing is overwhelming. Too bad all those 'buy and hold until you die' sheeple in mutual funds will never read this article."

While it is always nice to see folks appreciate the work we do, the reader ...

Read More
Comments

Join Me Tuesday at 6:00pm - Plotting 2015's Strategy

Read More
Comments

Busted: One of the Greatest Myths in Investing

When the editor of Benzinga.com asks for something, I usually try to lend a hand whenever possible. Benzinga is probably the fastest growing stock-oriented site in the country, syndicates their content across the web, and partners with the big boys. ...

Read More
Comments

There Are Reasons To Stay Bullish Here

A month ago, the sky was falling. The technical divergences seen in the market were coming home to roost. Growth was slowing. Indicators were falling. Moving averages were snapping. There was fear in the air. And for the first time ...

Read More
Comments

Isn't It Odd That...

Although the S&P 500 and Dow Jones Industrial Average indices enjoyed pretty good gains Wednesday and finished at fresh all-time highs, the rest of the major indices failed to join the party. And the NASDAQ, NASDAQ 100, and Microcap indexes ...

Read More
Comments

Is Uncertainty Creeping In?

It's been quite a roller coaster ride on Wall Street lately. Since the dog days of July (7/24/14 to be exact) the S&P 500 has been on a wild ride. In a period of just a little more than three ...

Read More
Comments

Can We Trust the Bulls' Latest Stampede?

With the S&P 500 having blasted up +10.9 percent in just 12 days, it is safe to say that the bulls have displayed a little "oomph" in their latest joyride to the upside. And to students of the game, it ...

Read More
Comments

The QE Dance Continues

It appears that the dance with QE will continue today. For anyone invested in stocks, this has been a beautiful dance to watch for several years now. It's a bit of a two-step and here's how it works. First, the ...

Read More
Comments

The New Battle Cry: Inflation or Bust!

As someone who entered the investing business in 1980, it is very odd to see the central bankers of the world now focused on trying to increase inflation. Back in the day, inflation was the enemy. An enemy Paul Volcker ...

Read More
Comments

Hawkish Or Just Plain Pragmatic?

As expected, Janet Yellen's Fed announced yesterday that their QE bond-buying program was coming to an end. The move was widely telegraphed and could be viewed as a positive since the Fed no longer thinks the economy is weak enough ...

Read More
Comments

Apparently There Is Nothing To Fear But...

The bulls put a bit of an exclamation point on what is turning out to be a real joyride to the upside higher yesterday as the S&P 500 once again rallied hard without the benefit of an obvious catalyst. The ...

Read More
Comments

A Spooky, Must-See Chart For The Season

It is getting to be that time of year where writers feel compelled to somehow work the words spooky, scary, frightful etc., into their work. So, in keeping with tradition, it is time to step back from the blinking lights ...

Read More
Comments