Investment Ideas from an Athlete-Investor’s trek to the top.
Finish STRONG! (#3 of 5)
Welcome to #3 in a series of 5 blog analogies that came to me as I slogged to the top of Kendall Mountain in the Kendall Mountain half marathon last weekend in Silverton, CO.
CHECK IT OUT: Kendall Mountain Run
Knowing I was endeavoring in what I estimated to be a 5 hour journey, I knew that pacing myself was going to be the key to finishing strong. The same is true with investing. Each time I passed an aide station, I grabbed water (aka, slowed down a bit, when the opportunity presented itself) but kept going—I didn’t stop and sit out expecting enlightenment as to when I might need to continue my journey.
For you investors, are you reading the market timing analogy here? I always kept going, and I FINISHED STRONG. Pacing your investment strategy to run when you should be running and to slow down, when and only when the data suggests (AKA an obvious aide station presents itself) is the way to win the Investment Race of Life.
I have to give a shout out to my right and left hand of determining WHEN to run and when to walk (AKA, investing in stocks or owning cash, basically), Dorsey Wright and Associates. Thanks to their services, (Check them out: www.Dorseywright.com) I no longer have to chart, by hand, the holy grail of investment success: PURE DATA that removes all emotion and guesswork.
Dorsey Wright and Associates updates daily for us how each asset class is performing against one another. The higher the asset class ranks, the better the performance, sort of like a Tug-of-War or an arm wrestling contest amongst each asset class. THIS is how we know how and when to run and when to walk.
At Alphavest.com we aren’t going to own stocks if stocks rank below cash in the tug-of-War, and we aren’t going to walk AKA own cash if Stocks and International Stocks are ranked #1 and #2 in the Tug-of-War FAR ABOVE cash in the line-up. By the way, this is the current line-up (Domestic Equity #1 and International Equity #2)…the MOST BULLISH line-up possible in investing.
Are you running or taking a water break? Finish Strong—Get Liberated.