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TIMINGTRUTH.COM NEWSLETTER 2010-01-08
CURRENT SIGNAL TRENDS: Currently all markets continue to show a long term upward trend. The on-line Performance Tools have been updated to show all timing signals through December.
LONG TERM MARKET TRENDS: To begin the New Year we want to look at the BIG picture. This month's graph compares the past performance of the US Market (as measured by the S&P 500) against the performance of the world's emerging markets (as measured by Vanguard's VWO index fund). There are three obvious points seen in this chart. - The current trend has been up for both since Spring of 2009.
- A Buy & Hold strategy using an S&P 500 index fund would have earned NOTHING.
- The greater the returns the greater the risks; look at the returns of VWO and its greater volatility.
As a side note TimingTruth issued a SELL signal on 2008-06-18 for VWO; and then a BUY signal on 2009-03-30.
OUT STRATEGY INSIGHTS: Our strategy is not just all about timing markets. It's also about keeping the expenses and costs to an absolute minimum.
- We suggest only index ETFs with the lowest expense ratio
- We eliminate frequent trading to save on commission expenses
- We encourage you NOT pay financial professionals 1% asset based fees
- We encourage you NOT to pay mutual fund management fees (reported as expense ratio) which average 1.3% of your annual net asset value
That 1.3% sounds small, but compounded over 30 years it'll eat up 32% of your wealth assuming an average return. Even the little tings are important over the long term.
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