Dynamic Asset Allocation with Long-Term Market Timing to Manage Risk

Dynamic Asset Allocation means moving in and out of Assets or Sectors as each becomes stronger or weaker. In order to do that you need a long term market timing strategy.

One Web site I have found that uses this strategy is CConfident Investment Strategiesonfident Investment Strategies

The aim is to avoid large losses but at the same time go for high returns when market conditions are bullish and stand aside when the market is bearish.

The primary benefit is that your capital is virtually still intact at the end of a bear market and is ready to capitalise on the next bull run. Thus the compounding effect of returns is maximised because you have retained most of your capital and do not have to use the bull market just to recover your losses.

I am a great believer in using technical analysis and charts to help determine long term market timing. I have used it myself for several years and profited from it.

So when I come across a site like Confident Investment Strategies I think it is worth taking a look if you are interested in managing your own Market Timing Beats Buy and Hold Investingretirement nest egg. This will keep fees down to a minimum but will require some of your time.

Your Financial Planner is likely to put you into a static asset allocation model with quarterly rebalancing at best. This bears no relation to the reality of the market action. Just like they tell you to keep investing and buy and hold regardless of market conditions, so too you are supposed the stay with a bearish asset or sector until rebalancing time comes around again. This makes no sense to me.

The mantra is stick with the plan but it is not a plan because it bears no relation to what is happening in the markets.  For a Baby Boomer in retirement that can be lethal.

A plan should include contingencies for sudden changes in the market – like now.

Confident Investment Strategies include many of the rules and features I am slowly developing in my own retirement investment model. This includes:

  • Directly Investing in Diversified Index Funds, Sector Funds and ETFs.
  • Dynamically Allocate and rotate the Assets based on Market conditions.
  • Use Objective Analysis for long-term market timing to take advantage of bullish or bearish market conditions.
  • Use Strict Stop Loss techniques to protect against significant losses.
  • Use mechanical investment models that eliminate human emotion in the decision making process.

If you are considering managing your own retirement nest egg then Confident Investment Systems might be worth a look. It could help you with long-term timing and help you avoid large losses too.

I am not affiliated with this site nor do I receive any payments for any referrals to the site. I do suggest you try their free newsletter if you are interested in managing your own retirement nest egg.

2 Responses to “Dynamic Asset Allocation with Long-Term Market Timing to Manage Risk”

  1. DOR says:

    David,
    That seems like a very interesting newsletter re Dynamic Asset Allocation. I just wonder to what extent it is geared to an American audience investing in $. I find that currency fluctuations can also wreak havoc on a portfolio! Nevertheless, I do like what I have seen on their website and ask how you might avail of their service.
    Regards,
    D

  2. admin says:

    D,

    I like what they do too but being in Australia makes it a little hard unless I invest directly in the USA. Then I’d have exchange rate risks. Right now with a high Aussie Dollar it may be okay though.

    The only thing I can suggest is emailing them to see if they have any affiliation with anyone in Ireland or Europe.

    Or try and find a similar site in Ireland/Europe and contact them. I am sure there will be similar sites based on the same principles.

    David

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