The Stock Market Advantage

By on April 30, 2006

This is the first post in the blog format for The Stock Market Advantage, which has been available on the internet since 1996 at stockmarketadvantage.com. Two live portfolios were used to demonstrate an investing system dubbed “The Tactical Timing System.” The performance has generally been favorable, and both portfolios have outperformed the S&P 500 since going on the system. However, 15 years of “real world” testing may not be a long enough period to actually make the claim that the system is superior to buy and hold, when adjusted for risk.

What follows is the home page from the original website (which may be taken offline at some point in favor of this blog):

The Big Question…

How many times have you heard, “If their investment advice is so great, why do they have to sell it?” It’s a legitimate question. If a guru’s stock picks were so profitable, would it be necessary for them to charge hundreds or even thousands of dollars a year for their advice? It’s astonishing how few investors are able to grasp that someone who requires remarkable sums for a “money making machine” or “superior stock picks” is probably unable to make profitable trades for themselves, much less tell you how to.

The Performance Edge

The fact that you are reading this indicates you have searched far and wide for an edge to improve your investment results. You have reached the site that will give you a substantial advantage over most investors at no cost whatsoever. The unique proprietary approach utilized here, the Tactical Timing System, has been painstakingly developed, refined and back-tested. In a real world account (the aggressive portolio), the system returned 15.6% per year versus the Wilshire 5000 index return of 12.5% per year over the 10 year period ended March 31, 2002. At first glance this may not sound like much, but over an extended timeframe it is an enormous advantage. Starting with $20,000 and achieving the same returns over 30 years, the system would provide an ending account balance of over $1.5 million, while the same investment in the broad index would show a respectable ending account balance of $685,000. Dalbar, Inc., a Boston research firm, discovered that from 1984 through 1998, the typical stock investor achieved less than 1/2 the return of the market index and in the example above would end up with a mere $134,000.

And It’s Free!

To receive the free newsletter, published intermittently, and timing signals by e-mail notification, type “subscribe” in the subject block after clicking here. Your e-mail address will not be sold or provided to anyone and you won’t be bombarded with unwanted e-mail. I do not charge for this service because I don’t need extra income. This is my way of contributing to society the system that has improved my investing results to an incredible degree.

The Market = No Guarantees

Finally, there are no guarantees in stock market trading and I consider it a fairly risky endeavor, especially over the short-term. This website is not meant to deliver investment advice, but serves as an example of what can be accomplished with a disciplined, systematic approach. If you do choose to follow the signals, please keep this caveat in mind and only invest money you can afford to lose. Be aware that an individual’s commitment to equities as a percentage of their total assets can vary widely depending on age and other circumstances. A fee-only financial planner may be able to assist you when making any decision regarding proper allocation of assets.

Disclaimer: It is very difficult to outperform a buy and hold strategy. Many investors have found themselves best served over long time horizons by investing regularly in a diversified portfolio of stocks or low cost, broadly diversified indexed stock funds. Information presented is based on analysis of past data and assessments by the Tactical Timing System model. Future performance may not reflect past performance. Profitable trades are not guaranteed. No system or methodology ensures stock market profits. Although accuracy is strived for, no guarantee is made regarding the accuracy of data presented.

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