Good Fortune Advisory

The stock market undergoes twenty year 'secular' bull markets followed by twenty year 'secular' bear markets. You must adjust your investing strategy to prosper within those conditions. This chart clearly reveals those time periods:

85% of investment results are due to the trend of the over-all market (the correlation of stocks or funds to the market.) Get the trend right and you have 85% of your results assured. To stay in harmony with the market Good Fortune uses three market indicators:

SENTIMENT has a 4 to 16 week span revealing the specific entry point for long and short positions. It is best used in conjunction with Value and Trend as discussed in our weekly issue of Good Fortune. When below 30 aggressive 'buys' are warranted. When above 45 we'd consider 'short' positions in specific mutual fund sectors. Click here to see it.

TREND has a 1-3 year span to reveal tradeable bull and bear markets. It is useful for investing in stocks and mutual funds both long and short. Within the current long-term secular bear market from 2000 we still find very tradeable trends clearly market by our Trend Indicator. Click here to see it.

VALUE has decade-long span. It revealed the 2000 market peak (bubble) from stock market over-valuation and the secondary peak in 2007 from the housing and interest rate bubble. It is based on market price against cumulative retained earnings. This Value Indicator controls the trading rules then based on Trend and Sentiment. Click here to see it.

Good Fortune Advisory Letter presents these three indicators in graphical and numeric form every week, 52 times a year, along with a mutual fund investing strategy. Click here to learn more about Good Fortune.

Indicators