Sunday, 2 March 2014

Market Timing by Decision Moose

A few weeks back, I revisited a website which I had forgotten about. The website advocates investing in any one of the 9 asset classes through ETFs at any one time. The website tells you what and when to buy and switch among the 9 different asset classes. The ETFs are listed on the NYSE and they are:

  1. Cash or Money Market Fund
  2. Long-term zero coupon Treasury Bonds (EDV)
  3. Large cap US Stocks (SPY)
  4. Small cap US Stocks (IWM)
  5. Gold Bullion (GLD)
  6. Europe 350 Stocks (IEV)
  7. Latin America 40 Stocks (ILF)
  8. Japan stocks (EWJ)
  9. Asia Pacific ex-Japan stocks (AXJL)


The historical record of this strategy speaks for itself here. I decided to invest a small amount buying European equity (IEV) after the website recommended a switch on 7th February 2014.

I have to reiterate that for a hassle-free way of investing, buying low cost index funds (ETFs) on a long term basis is the way to go. However, it is very boring process. Hence, I am also trying out different strategies like Unit Trusts (keeping transaction costs to a minimum), Permanent Portfolio, and this Market Timing method by Decision Moose. And maybe five to ten years down the road, will ditch the lowest performing strategies.

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