TIMINGTRUTH.COM NEWSLETTER

2010-06-06

CURRENT SIGNAL TRENDS:

Unfortunately, May was not a good month.  The gains seen from February through April are all but gone.  The downturn the first week in May corrected itself by the second week but then reversed to continued a downward trend for the rest of the month.  This trend was true for all the markets we follow with European and Emerging markets faring the worst.  Those of you subscribing to our signal service should have received the latest position changes for all markets.

NEWS:

The latest business news to push the stock markets lower was the lower than expected jobs report.  The private sector only hired 41,000 employees, the smallest monthly increase since January 2010.  This was seen as a retreat in the recovery so most fled the markets resulting in a dismal May!  You have to love the herd mentality!

Other news concerns TimingTruth and its focus.   We're for "simple living"; not only simplified investment strategies but for any practice or strategy that allows us to shed the unnecessary complexities of this world.  Look for more as our site morphs to include other aspects of simple living practices.

LONG TERM  MARKET TRENDS:

This month's chart isn't long term but rather shows trends since April 2010 which are down 8-18%.  While the short term trend is clearly down we are above where we started 12 months ago by 10-25%.  The exception is the  European markets which are negative for the latest 12 months.

OUT STRATEGY INSIGHTS:

What we are experiencing now is normal, certainly not pleasant, but normal.  One of the fundamental premises of the TimingTruth strategy is to recognize that global markets do cycle through periods of up and down.  By monitoring these long term cycles we know when to leave the equity (stocks) markets and move our money into the debt (bonds, money markets) markets.  One of the reasons that European stocks fell is because of Greece's debt problems along with the other European countries facing a debt crisis.  However, Greece's debt problem means that short term bond returns have increased.  While bond yields are still below their historic average it is better to be earning a little versus losing a lot in the equity markets.  TimingTruth's strategy does not try to "beat the market" rather it complements the market cycles.  This approach allows us to greatly simplify our investments as well as our lives.