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Tuesday, May 11, 2010

Strategy at this dynamic juncture

Investment is a new game for me. My first curiosity for this blog is strategies with which we can approach the endeavor of turning our money into more money. Day-trading seems a tedious project, but it seems to me that there is opportunity in such a strategy at this time. Owning MTW and MICC gives me motion sickness, watching them go up and down.

Then again, perhaps long term appreciation is a better strategy; less risky, less of a pain. Or some union of these strategies? Does anyone have thoughts on this issue or know good resources to educate myself with?


  1. My general approach to this quandary of having several high risk positions has been to have a large portion of my investments in more stable assets including a few stable, index or index-like mutual funds. They give me the security necessary to go out there and look for the more volatile, but potentially higher yielding securities.

    In terms of good resources, I will try to find some for you. I will be sharing in the next couple of days a purely asset allocation strategy that I have devised through historical back testing that is devoid of individual stock picking. This is for those who would rather swap between asset classes rather than individual issues. I am trying it out myself at the moment to get a sense of what is involved in executing it.

  2. That sounds like Quantitative Advantage's strategy. Maybe I should have stayed there longer....

  3. I have a probably more pedestrian version of what they have produced because my mathematical skills are only so honed, but the general idea is theoretically sound and the approach isn't a bad one. The idea, put simply, is you use market signals to tell you where the better returns will be.

    I hope to put something up tomorrow tonight about it and indicate how you should use it if you decide to pursue asset allocation as your primary method of investing. In truth, picking the right asset allocation is about 95% of the battle. The remaining 5% is about picking the right securities.