Sponsored Content - Everyone wants to know when this current bull market will end…well “most” everyone, says Mike Turner, president, Turner Capital Investments.
He explains how to know exactly how long this bull market will last. He explains how to avoid guessing when that date will occur and how to position your investment portfolio in the meantime. His common-sense approach is refreshing and extremely timely.
There are only four types of stock market investors…which one are you?
- (Most investors) Those who buy fundamentally strong stocks (or <shudder> mutual funds) and hold on to them in good and bad markets (these folks are “in it for the long haul” and come under the definition of “buy-and-hold”), or
- (Second-most investors) Those who study earnings reports, subscribe to big-name prognosticator newsletters, hang onto every word that comes out of Cramer’s mouth, worries about what the Fed will do, worries about the impact of inflation and/or interest rates, voraciously reads as many financial articles as they can and believe that if they are armed with all of this vast amount of knowledge, they will make better trades and beat the market (these are the “well-informed” traders), or
- (Third-most investors) Those who haven’t got a clue about what to do and just guess about what to do with their 401k and/or IRAs (these are the buy-and-hope folks…aka “clueless investors”), or
- (Lastly…these are the most common-sense folks who are generally the most consistently profitable investors) These are investors who know the following:
- No one knows what the market will do in the future and no amount of research or studying or listening to so-called “market sages” will do anything to accurately predict what the market will do tomorrow, next week, next month, next year or whenever, and
- The market is never wrong. It can be frenetic, emotional, stupid, blind, idiotic, crazy, fearful, terrified…but, it is never wrong, and
- The number one, very best, always works, most profitable investment strategy is to ALWAYS have your investment strategy in sync with the market, because if your investments are in sync with the market, and since the market is never wrong, your investments will, far more times than not, generate handsome returns for the least risk, and
- Never bet against the market. Why should you if the market is never wrong, and
- Most importantly…“The current trend in the market will last EXACTLY…until…it doesn’t. Since this is a mathematical fact and cannot be disputed, knowing when the current trend HAS CHANGED from a bull-cycle to a bear-cycle is absolutely critical.
If you read the above carefully…especially item 4.e…then you now know, with certainty, when this current bull market will end. And, you must be asking yourself, “How will I know that the bull market has ended?”
First of all…If you did ask that question, you should congratulate yourself in the use of the word “has.” That, my friend, is the key to understanding how to always be on the right side of the market and knowing when the current bull trend “has” ended.
The simplest way to know when this has happened is to chart a composite index composed of the S&P 500, the Nasdaq, the Russell 2000 and the Dow. When that chart moves below its 200-day moving average, the bull market will have ended and the next bear market will have begun.
Of course, there are early warnings that come along with such a major shift, but those warnings would take another couple of articles to explain.
You can simplify your efforts in tracking “when” this bull market “has” ended by referring to the Turner Capital Total Market Index. It is available for free at www.turnercapital.com by signing up for the free Turner Capital newsletter. I publish this chart each week in the letter and it is extremely valuable if, indeed, you are one of the common-sense investors that I spoke of above.