CNBC replayed a TV show they created in 2009 called the “Bubble Decade.” If you get the opportunity, it is worth watching. One of the interviews featured Michael Wolff (journalist) and Mark Cuban(investor). Wolff said he hoped the next bubble was coming and Cuban said the next bubble was coming. Neither gave a timeframe. However, if you watch the market you can see signs that it is coming. One signs is a 3d printing stocks which doubled over the last 2 weeks and then fell by half. Look at a chart of VJET. VJET, like the other 3d printing stocks, has never had a profit.
Investors Business Daily featured an article on 19Nov called “Delta Uses Relative Strength ETFs To Beat The Market.” It featured the method Delta Investing Management uses to invest. From 03/07 through 9/13 it has had an average annual gain of 24% vs the S&P500 (with dividends) gain of 5%. The article suggested you could do the same by following the S&P500 equal weighted EFT RSP and buy when the price was above the 75 day moving average and sell when it was below. The two ETFs Delta buys are PDP and DWAS. PDP is rebalanced quarterly by investing in the 100 highest relative strength mid and large cap stocks. DWAS is rebalanced quarterly by investing in the 300 highest relative strength low cap stock.
The sum of the deviations (913,1060,1031) is not up for the last two weeks – not a time to invest.
The DJ Wilshire 5000 index is above its 50 day moving average and the average is increasing – time to invest. Both trends are not up – not a time to invest.
My current investments:
SAutomotive has a price of $56.44, a sell price $53.62, a relative rank of 13, and is a hold.
JapanSmallerCompanies has a price of $14.05, a sell price of $13.56, a relative rank of 33, and is a hold until I need the money to invest in a better fund or if falls a little more.
Nordic has a price of 44.18, a sell price 41.97, a relative rank of 10, and is a hold.
My portfolio changes this weekend:
IRA #1 – None
IRA #2 – None
My portfolio market exposure after this weekend’s changes
IRA #1 – 100% invested
IRA #2 – 60% invested