Re: The Mebane Faber method of Investing...
mInvestor
4/30/2012 12:10:45 PM
Ashishi,
It's great we have people like you in this community, and that's why all of us come here.
I will let you know what happens after I study all those references. I am pretty sure it will help me understanding more and making better investment.
mInvestor
Re: The Mebane Faber method of Investing...
back2basicz
4/30/2012 4:17:45 AM
Mln,
I am always Glad to help.
That's what the idea behind this community is.
We try and help each other get better at Investing.
Please do not hesistate to contact me if you need any more info on this issue.
Also,do keep me posted on how things are going with your Portfolio and this Market Timing Technique.
What I really liked about this Technique,is that it is so Basic and So Fundamental-You want to be in an Asset class only when its Bullish and exit when it turns Bearish(before the majority of losses hit you ).
Regards
Ashish.
Re: The Mebane Faber method of Investing...
mInvestor
4/29/2012 11:03:01 PM
Ashishi,
Thank you. I am going to spend some time next to study this technique.
Best wishes,
mInvestor
Re: The Mebane Faber method of Investing...
back2basicz
4/29/2012 2:41:46 PM
Mln,
Yes,It is a Market Timing Method at its most Basic.
It has been proven very effective so far.
The only change I make is that I set my Stops 5%-10% below the 200DMA and I enter the ETF 5%-10% above the 200 DMA.
Most Professional Traders(and especially automated HFTs) set Stops exactly at 200DMA.
So you want to do as much as possible to avoid them.
Regards
Ashish.
Re: The Mebane Faber method of Investing...
mInvestor
4/29/2012 12:42:36 PM
Ashishi,
Thank you for providing these invaluable iformation. From what you described, it sounds the technique is related to market timing. Of course, I might be wrong. I will go through all information to get a better idea.
All the best.
mInvestor
I wanna sit back and Chill....
back2basicz
4/29/2012 12:11:01 PM
Scott,
It all boils down to Returns and Basic Human Pschyology.
If you stared at your Stock portfolio and saw that it went nowhere or for that matter went Negative;you would go extremely negative on your Portfolio and refuse to pay much attention to it.It could very probably be the case,you dump those positions at a Big Loss and never,ever venture back into Stocks again.
On the other hand,if you know your Original Investment in Stocks is throwing off 3%-5% in Dividends every year,without you doing anything to that Portfolio you tend to stay invested in those stocks.
And then,when you re-invest the Dividends in those stocks again the Compounding effect (which usually kicks in around the 7th -10th year of your Investments) totally makes you want to sit back and Chill!!!
Regards
Ashish.
Ashishi,
That's very helpful, thank you.
Re: Flat Tax code is essential.
back2basicz
4/29/2012 12:00:28 PM
Scott,
Never say Never say Never...
Ashish.
Well, I agree tax reform is needed to close loopholes.
Apple is no Enron.
Flat Tax code is essential.
back2basicz
4/29/2012 11:48:49 AM
Scott,
Why should there be one set of rules for Multi-Nationals like Apple,Google,etc and another for SMBs?
This is where a Flat Tax code with Zero exemptions comes in.
As far as Enron goes,the company made all those loans to off-balance sheet entities with ties to Company Management;
What makes you think such a thing can't happen at Apple or for that matter a company with a stronger Personality cult at the top(Oracle/chesapeake for instance)???
You can't legislate away Greed and Bad Behavior(inspite of the best efforts of the Democrats..)
But you can level the playing field for all companies large and small.
I just wish Ron Paul were in position to make a Real Difference in America today...
Regards
Ashish.
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