Dear Investor, Peter Lynch and Warren Buffet said, "Buy good stocks and hold for the long term." Not any more. You need a strategy to match the times after year 2000. Without adjusting to the new times your return was -5% per year annualized for a -45% loss. The four keys shown below are the solution to up results in a down market.
You may be searching for high performance funds, the best income choice for the next few months or just digging out of a hole. Success depends on you knowing 80%+ of investment return comes from the market trend and about 10% of the gain is from the industry. That leaves only 10% from stock performance. So if you only want stocks better hit that back button. In the current environment your market success depends on. . . .
Real money results have shown the last six weeks of a mutual fund's trend is the best predictor of the next four weeks. That one piece of information is the first key to prosperity. I'll show you where that data appears weekly. The next is that the market moves in three to seven month trends, both up and down. No, they are not predictable or exact. But a proven, simple trend indicator can keep you on the right side of the market until it's time to take a breather in a money fund. Again, you can get that weekly. Now you have two keys to your prosperity: fund selection and market trend. The next is the fund family and its managers. Over my 30 year career I've found only an appropriate selection drawn from Fidelity investments will fit the key of industry selection, great managers, low costs, super on-line and telephone support and rock solid management. So another key gets taken care of. Finally, you need a proper degree of diversification. One slice specifically in strong growth, another with about four components for breadth and a slice of income for stability. That is the final key. So your keys are: a top ranked fund with near term growth potential, guidance from market trend on exposure, diversification as your nest egg grows and a proven fund family. From 1982 to 1989 I searched for such a combination. My Dean Witter broker didn't have a clue. I took over 20 advisory letters with bupkus for a result. So I went to Stanford Graduate School of Business on a Sloan Fellowship, then did three years post-graduate in statistics and filled nine notebooks. When the results started to pay off, family and friends asked to join in. That was the birth of my advisory letter, which was free to them for a couple of years. Oh, and I forgot to say I even got hired to run a mutual fund. Then friends of friends began asking for it and I realize it should be a business instead of a charity. And Good Fortune was born, way back in 1989, twenty years ago. It must be working 'cause I just completed issue 1,011. The Good Fortune investment advisory letter uses a proven statistical model to achieve these four goals with mutual funds from the largest fund organization in the world: Fidelity Investments. Nationally recognized and ranked by Hulbert Financial Digest, the Good Fortune Advisory Letter combines a mutual fund Trading System, Market Timing Service, and source of sound Financial Life-Cycle Planning. It provides timely information, clear, specific buy/sell instructions and a bright, informative editorial. We use an intensely researched, short diversified list of Fidelity mutual funds to achieve overwhelming profitability, presented every Friday, 52 times a year. Click here to examine our contents. To Keep You Up To DateEvery Thursday I add the latest market data, evaluate market conditions, create the priority list of funds from best to worse and finally confirm the optimum choice for growth, diversification and income. After that I write-up the results for you along with commentary plus a brief editorial on an investment, retirement, tax, or legacy topic. As The Weekly Letter Is Short And To The Point
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| Thanks for making Good Fortune available by e-mail. I do a lot of traveling, and it's great to know that I won't miss an issue when I'm on the road! I've been a subscriber for about 3 years now, and am very (make that extremely!) pleased with the overall results of following your Maximum Compounding Plan. Thanks to Good Fortune, we've been able buy a new house, and use some of our GF profits for the down payment. For the record, I had been a subscriber to the [letter XXX] for several years (actually I still subscribe, but more for reference only), and am just thrilled with your results vs. that other letter. Keep up the good work! (Feel free to quote me!) Michael Guzy, Randolph, NJ 07869 |
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Our investment approach is built on four sound financial principles: Fund Selection, Proper Buy/Sell Points, Market Timing and Asset Allocation.
FUND SELECTION: We select mutual funds by a statistically proven computer model which ranks the best funds to hold based on their targeted gain over the next eight weeks. We don't wait for undiscovered value; time is too short. Our average winner makes 4.4% in 9 weeks; our average loser drops 1.5%. That is enough for your to make 20% a year in our Maximum Compounding Plan.
TRADING: You only need to take six to nine actions a year. Fidelity has no sales charges in its funds and our strategy avoids their short term redemption fees and limitations. Being market responsive is better than the "buy, hold and pray" that long term investors suffer with. When a better investment comes along we move to it promptly, not agonizing for months.
ASSET ALLOCATION: Good Fortune provides three investment plans for Maximum Compounding, Diversification and Income. You'll be guided safely on the highest gains in your early years and then how to diversify across the plans as your portfolio grows above $100,000.
MARKET TIMING: Based on Value, Trend and Sentiment our indicators keep your portfolio matched to the market ahead clearly revealing the tactics to cope with uncertainty. You receive my Mastering The Market’s Mind report giving the entire strategy.
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I welcome the opportunity to assure your prosperity. Welcome aboard.Sincerely,
Bill Ragsdale, Editor
Good Fortune Fidelity Advisory