Related Categories

Related Articles


Timing Strategy (Risk-reduction Stock-Markets)

Timing Strategy (Risk-reduction in US-Stock-Markets)

I call this Timing-Strategy (BACKTEST only!) "S&P 500-Pattern-Recognition-36MO-Simple-Switch_gld". I checked different styles, but eventually this version produced only 3 neg. years since 1991, versus 23 POSITIVE YEARS

Timing Strategy (S&P 500 - Pattern Recognition -36MO - switch_gld) 1991 - Oct. 2016, tool used:

The good part about this strategy is, that it helped to avoid some of the biggest Downturns in the years after the .COM-Bust in the year 2000.  The Strategy was staying invested in the S&P 500 from 1991 until February 2001. After taking a break until Oct. 2003 and investing in "alternative assets" (avoiding the Stock-Market), the Strategy turned back to the US-Stock-Market from Nov. 2003 until June 2008.

Coming back after the Financial Crisis meant for the Strategy to step back into the Stock-Markets in April 2010. At that time the S&P 500 Stock Index stood at a level of ca. 1,180 points ! Since that month onwards the Strategy was invested - besides of 4 months - in the S&P 500. As per last Friday the S&P 500 stands at ca. 2,164 points !

I also wish you good luck in finding your strategy how to handle the Ups & Downs of the Market. Buy & Hold may be a good choice for the Average, but there might also be an alternative route...

Good Luck, Ralph Gollner

Wanna do your own homework? then check out the tool: