Investing World Today

  • Home
  • Contact Us
  • About

August 16, 2010 by investingworldtoday

Making Big Money By Looking At The Seasons Of Investment

When it comes to investing, many people focus their attention solely on finding the “perfect” strategy. What many people fail to recognize, however, is the fact that all forms of investment markets have “seasons” just like the very predictable weather patterns of spring, summer, fall and winter.

For example, it is fairly well-known that election year stock markets perform very well. If we step back, and analyze the performance of the stock market through out its documented history, we will see a very predictable pattern of performance.

For example, years ending with 0 through 5 are poorly performing or negative stock market years. Years ending with 6 are generally transition years, with years 7 through 9 being strong to extremely strong. There are, of course, other factors affecting investment seasons, such as interest-rate cycle and peak spending cycles, and there are no guarantees that any particular year will achieve a specific performance target. However, rather than simply looking for a strategy (which obviously would have worked for the author during an appropriate cycle), it is important to match strategy with the broad trends.

While it is obviously no guarantee of success, your odds will increase that a long stock strategy will be successful in the last part of the decade, while selling options or purchasing money market instruments may be a better strategy for the early part of a decade.

I have found this over the years to be the most effective way of managing the markets. Regardless, always keep in mind the protection of your capital, and always invest accordingly.

Sponsored By

Pizza Hut
Title Loans

Filed Under: Uncategorized

Recent Posts

  • What Is Socially Responsible Investing
  • 5 Myths About Financial Aid
  • Ways to Invest No Matter the Net Worth
  • Billion Dollar Companies that are Unprofitable (And Whether they can Turn it Around)
  • Four Ways in Which Automated Stock Trading System Software Can Boost Your Portfolio

Archives

  • February 2019
  • November 2018
  • July 2018
  • October 2015
  • June 2011
  • August 2010
  • July 2010
  • June 2010
  • March 2010
  • July 2009
  • June 2009
  • January 2009
  • December 2008
  • October 2008
  • September 2008
  • July 2008
  • June 2008

COPYRIGHT © 2015