TimingCube - Serious money - serious money,working capital,wealth building,long term savings,stock portfolio

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Signal Update

Current Signal Performance as of

Signal Type	Trade Date	Index	Return since issued
		Nasdaq 100
		Russell 2000
		S&P 500
		QQQ

Cumulative Returns since First TimingCube Live Signal () as of

Index	Long Only	Long Only with Margin	Long & Short	Long & Short with Margin	Buy & Hold
Nasdaq 100
Russell 2000
S&P 500
QQQ

Note: QQQ returns are included for continuity sake.

Market Update

The week began on the momentum established last Friday: with U.S. stock markets rallying some more on the news of a very big job growth increase during March. As the week progressed, optimism gave way to concerns about the geopolitical situation, corporate earnings, and inflationary fears led by the continued increases in the price of oil. At the end of the shortened trading week, the Iraq conflict escalation and a slow start to the earnings season had the markets down fractionally. For the week, the Nasdaq 100 was down 0.32%, the Russell 2000 lost 0.92%, and the S&P 500 held up the best with a small 0.22% decline.

This minor retreat on very low volume has not altered the predominant up market trend, and our current Buy signal continues unchanged.

Trend Timing School

Serious money

The very subject of money is very delicate and personal, sometimes even taboo. Many people do not want to discuss it. We fully support discretion and privacy aspects of money but for once, since we are amongst friends sharing similar wealth building ambitions, we will make an exception and address the age old question of "How much money should I invest in the stock market?" head-on.

Money being one of the two primary ingredients of the Trend Timing wealth building system (the other one being time itself), we feel it is an appropriate topic for this editorial. While how much money to invest is a highly personal question, and we recognize that not one size fits all, we always reply without hesitation "Substantially all your serious money".

We are not Financial Advisors but from experience we can clearly state that any meaningful wealth building system begins with the identification and long term commitment of funds, what we call serious money.

We have been taught that all money is serious, so what is serious money?
Any money that you do not need to live or as working capital in the near term should be viewed as serious money that you set aside and put to work entirely for your wealth building system.
When?
The sooner the better.

You don't withdraw serious money to pay bills, or to buy this summer's vacation. You don't use serious money to speculate or gamble on risky, get rich quick schemes. Serious money is your long term savings and retirement plan. What is long term? For all practical purposes, it is the rest of your life.

OK. Now that we have defined what serious money is, how prudent is it to recommend that all of it should be invested in the stock market according to the Trend Timing Model?
We understand diversification, and in the we recognized the wisdom of asset and strategy diversification as good risk management disciplines. Our stock portfolio will be diversified by definition because we advocate investing exclusively in market index instruments which represent broad baskets of companies and industries.

Because a Buy and Hold approach to investing guaranties riding every correction and bear market to the bottom, conventional wisdom has complemented this strategy with portfolio diversification to limit exposure to such stock market declines. As such, you would allocate only a fraction of your serious money to equities, and the balance would be placed in non-correlated investments or income producing instruments. We have always rejected such performance crippling wisdom. In fact, the most prominent difference between Buy and Hold and Trend Timing is precisely the "all-weather" characteristic of staying on the right side of the market and therefore benefiting from both rising and declining markets. This is why we are eager to put ALL of our serious money to work in the stock market ALL of the time. The more the better. The only exception would be in the case of a Cash signal, if we ever get one.

We appreciate the level of confidence, trust, and courage involved in the decision to commit serious money to an investment system. It does not have to be Trend Timing. As long as you select a time proven, all-weather investment method that meets your risk/reward tolerance, and that you can emotionally stick with for the long term, we know that you will be better off than if you hesitate on the sidelines. Money left sitting in cash or money market funds is not bearing any fruits, and is in fact steadily losing value due to inflation. Even if you decide to test the waters by committing only a fraction of your serious money, the consequence is watered down results.

We urge the uncommitted and partially committed to learn to trust a system soon because one thing is for certain, without a system and without long term consistency there can be no meaningful wealth building.