Market timing only works if you are omniscient; thus, I believe technical analysis and market timing is about as useful as astrology. Investors are always looking for a scheme, magic formula or mathematical strategy “guaranteed” to work.
However, the truth is that investment must be pursued based on the fundamentals of the company and takes patience over very long periods of time in order to weather difficult and volatile markets in order for the company to realize full value.
Even Wall Street “professionals” are unable to win at such a game as represented by Warren Buffet’s epic $1 million bet with Protégé Partners. Protégé, a New York money manager managing over $2 billion in assets, carefully chose what they believed to be the world’s best five funds of hedge funds. Yet, these top managers are lagging the S&P 500 by over 40%!
This is why at Altrius we have always attempted to focus on achieving the market’s return with less risk and volatility while providing our clients with greater income through dividends. Grand schemes often sound wonderful on paper, but rarely work in practice.
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