Capital Preservation is a major difference between the High Net Worth investor and the aspiring High Net Worth investor. It’s better to look for ‘sales’ in the markets than it is to swing for the fences with all your might. Practice ‘safe’ investing.
A part of rules Based Investing utilizes STOPs, STOP-LOSSes, TRAILING STOPs and even SELL ORDERs. You can use these on ETFs, perhaps never called upon. But really useful if there is a Bear market like the last 2 Bears; 54% decline 2007-09 and 49% decline 2000-02. Note: The average Bear market is a 38% decline.
Hurricanes are named. Space Ships are named. Hence, I’ve decided to name the Bull markets ‘Amanda’, and the Bear markets ‘Kevin’. Since 1929, there have been 25 Bears (aka: Kevin1 to Kevin25) and 25 Bulls (aka: Amanda1 to Amanda25). As of June 2017, we are 8+ years into Amanda25 with Kevin26 lurking (somewhere).
The Golden Swan Monthly Newsletter is a morph of the Golden Ticket and the Black Swan (le cygne noir). Natalie Portman, Gene Wilder and Johnny Depp provided the inspiration.
Rules Based Investing, or Buy&Rule ® is simply Buying a security and enacting a Rule (or a discipline). You stay with the position, go with the Flow. If the security, or market, shows weakness, Technical or otherwise, you Run-Rabbit-Run with Jack leading the way.
High Heat meets Ozzy meets ScarFace. This could also be conveyed as Sesame Street explains Wealth. Stay tuned, this Blog is leading edge.
