Buy and Hold.
The market always goes up.
The market will come back.
It can’t go down much further, it is a good time to buy.
How many of us are getting that advice right now?
Did you lose 20% of your investments in the last month with a Buy and Hold strategy?
Are you dollar-cost averaging on the way DOWN?
The recent stock market drop has impacted all investors and retirees.
Investments and retirement accounts have realized a large drop in value in an unprecedented short period of time.
This could have largely been avoided using price charts and using technical analysis.
Let me provide an example.
In January, Bond prices were beginning to show strength against the S&P500.
Let’s take a look at the chart of TLT (20+ Year Treasury Bond ETF) versus the SPY (S&P 500 ETF)
I published and sent this chart to a friend on February 03, 2020. He was asking for my opinion on whether he should be in a bond focused fund or an equity-focused fund.
Now, I don’t know what direction the market will take, however, I did share this chart of TLT showing strength against the SPY with a breakout of a downward trend line.
Now let’s take a look at the March 22 chart to see how Bonds performed relative to the SPY since then.
WOW! That is an incredible move.
We had our “investment” retirement account in bonds prior to this date and the recent stock market crash.
Was I tempted to switch from bonds to an equity-focused fund when the market was setting all-time highs?
You bet I was!
However, the charts told me that the smart money was moving to bonds and that they were likely to outperform equities in the near term.
We know what happened since then.
TLT is up over 9%
SPY is down 25%
This is an example of what to expect in the weekly Klarenbach Report newsletter.
The Klarenbach Report will provide my interpretation of Technical Analysis providing opportunities that we are interested in.
My goal is to share some basic Technical Analysis that you can utilize in your investment decisions.
Drop me a line with any questions or comments.
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