Tactical Timing System

Burton Malkiel Defends the Efficient Market Hypothesis

by Barron Maestro on April 13, 2012

Burton Malkiel - Efficient Market HypothesisCNBC’s Steve Liesman interviewed Princeton University economist Burton Malkiel, author of the excellent book A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing (Completely Revised and Updated) this morning.

Liesman brought up criticism of the idea of the efficient market because the perception during the financial crisis of 2008 was that markets didn’t work. This implied Malkiel was wrong and markets were not efficient. Malkiel responded, “what efficient markets means is that information gets reflected quickly and you get a tableau of prices that’s very hard to beat.”

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Stock Market Advantage Sell Signal

by Barron Maestro on February 21, 2012

The Tactical Timing System has generated a sell signal. To comply with the system the following positions were sold today. The proceeds were allocated equally between the Vanguard Short-Term Corporate Bond ETF (VCSH) and the Vanguard Intermediate-Term Corporate Bond ETF (VCIT).

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The performance of the Stock Market Advantage (SMA) Portfolio was particularly fortuitous in 2011 as the investment returns trumped the indexes and the vast majority of professional money managers.

Stock Market Index Returns

This sort of outperformance is probably achievable only once every 10 years.  It can largely by attributed to luck with a small dose of experience/skill, and the unusual efficacy of the Tactical Timing System.

The successful timing signals added about four percentage points to the return. There were four timing signals generated in the past year as shown below:

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Stock Market Advantage Sell Signal

by Barron Maestro on October 27, 2011

The Tactical Timing System has generated a sell signal. To comply with the system the following positions were sold. The proceeds from the sales were reinvested in the Vanguard Short-Term Corporate Bond ETF (VCSH) and the Vanguard Intermediate-Term Corporate Bond ETF (VCIT).

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Stock Market Advantage Buy Signal

by Barron Maestro on October 4, 2011

The Tactical Timing System has generated a buy signal. To comply with the system the following positions were purchased and funded with the sale of a portion of the Vanguard Short Term Corporate Bond ETF (VCSH).

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Stock Market Advantage Buy Signal

by Barron Maestro on August 5, 2011

The Tactical Timing System has generated a buy signal. To comply with the system the following Exchange Traded Funds (ETFs) were purchased and funded with the sale of a portion of the Vanguard Short Term Corporate Bond ETF (VCSH).

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Sell Signal

January 18, 2011

The Tactical Timing System has generated a sell signal. To comply with the system the following positions will be sold: 30% of the position in Rayonier Inc. (RYN) 100% of the position in Vanguard Total Stock Market ETF (VTI) 100% of the position in Vanguard FTSE All World ex–US ETF (VEU) ——————————— Target Allocation: 30% [...]

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2010 Performance Review

January 16, 2011

The year 2010 was marked by a stock market that was strong in the spring with the S&P 500 closing as high as 1,212 on April 26, 2010.  A subsequent vicious correction ensued with the S&P 500 closing at a low of 1,022 on July 2, 2010; a drop of nearly 16% from the high.  [...]

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Stocks Are Beginning to Look Attractive Again

August 25, 2010

As the market stairsteps lower, investors are being presented with some very enticing opportunities. I maintain a separate account from the portfolio featured at this site (in which we are getting close to a TTS buy signal). I initiated new positions in three stocks this week; Hewlett-Packard (HPQ), EnCana (ECA) and Vulcan Materials (VMC). I [...]

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T. T. S. Fear Index Revised

July 13, 2010

The Tactical Timing System Fear Index was revised today. The index is designed to measure investor fear and euphoria. The TTS Fear Index is based on a scale of 1 (major complacency or euphoria) to 10 (extreme fear). The components of the proprietary indicator reached extremes never observed before during the 2008-2009 crisis. Therefore the [...]

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