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TIMINGTRUTH.COM NEWSLETTER 2011-12-07
NEWS: The first three weeks of November didn't offer much hope but these last two weeks have faired better. The S&P 500 Index is about back to where it was at the end of October. Some of the news of late has been encouraging. The Europe Union might have a plan for dealing with its debt. On the other hand the US Super Committee failed miserably. The jobless rate is the lowest in years and the Holiday season is off to an OK start. Home sales continue to be down. Let's hope this is the beginning of a real trend; but just today the hopes dim for a European debt deal.
TimingTruth news is that we have decided to offer referral bonuses. For full details please read the Terms & Conditions. The advantage of subscribing is that you receive ALL the signals TimingTruth generates. These allow you to diversify your retirement investments over: - VEA and EFA - Two similar European Indexes
- VBR - A Small Cap Index
- VNQ - A mostly US Real Estate Index
- VTI - A general US stock index similar to the S&P 500
- VWO - An global index of emerging economies
CURRENT SIGNAL TRENDS: The S&P 500 Index is still a SELL. As last month, the general trend remains downward. November did little to change either the long or short term trend. The graph below shows the S&P 500 with the trend analysis lines. The middle blue line shows the long term trend, red line is the short term trend.
OUR STRATEGY INSIGHTS: Last month we looked at just what to expect from your TimingTruth retirement investment efforts. This month is December and the tradition is to review and ponder the previous 12 months. We're not sure there's much value in that, especially when it comes to retirement investing.
The one thing that we can learn from the last 12 months is revealed in the chart above. If you look at the very fast dive the S&P 500 Index took in roughly a two week period you realize there is little to nothing one can do to avoid such drops/corrections. The important thing is not to lament the roughly 16% drop but to be glad that it triggered a SELL so that you will avoid the losses seen back in 2008. This performance graph below for the period from May 2003 to present shows how exiting the S&P 500 Index even with 16% losses off of the high add up to your advantage over time versus a Buy&Hold strategy. 
For more details on our investment strategy visit our site links below:
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