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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"
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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 ...