Rule-Based Investing Saves the Day

Right now, the market has been in an uptrend for almost two years. Statistically speaking, the rally is one of the longest uptrends on record. So it is only natural for people to begin questioning “when will we see a correction?”.

When you begin to make investment decisions solely based on opinions, you run into issues; you can always find one to support your argument. As mentioned on our investing strategies page:

Each strategy has staunch allies and enemies. To make matters worse (or better, depending on your point of view), everyone can point to data that shows their investing strategy is can make all kinds of money.

And if you don’t have a strong opinion either way, the opposing views only muddy the water.

Case in point: This week, two articles crossed the wires. One article came from Marketwatch.com, called “The Bull Market is Here to Stay”, which discussed eleven signs the economy is on the right path. The other article came from Barrons.com, called Has the Nearly 2-Yr-Old Bull Market Topped Out?”, with the lead in that if history is any judge, the stock advance that began in March 2009 is hitting valuation levels that are cause for concern.

If you want to invest safely, you’ll need some investing principles to guide you. Work your investing process, and stick to your rules. They will tell you when it is time to get out of the market.

Sources:
The Bull Market is Here to Stay
Marketwatch
http://www.marketwatch.com/story/the-bull-market-is-here-to-stay-2011-02-10

Has the Nearly 2-Yr-Old Bull Market Topped Out?
Barrons
http://online.barrons.com/article/SB50001424052970204703504576124090287979026.html

 

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One Response to Rule-Based Investing Saves the Day

  1. Pingback: Rule-Based Investing Saves the Day (via Invest Safely) « Investing for Cashflow

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