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Old 12-23-2011, 07:14 AM
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l2ridehd l2ridehd is offline
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I would agree with the last 5 trading days of the year, not sure about the first two of next year. Most stock funds and ETF's are doing everything they can to get their results as high as possible at year end. Starting in January they will adjust their portfolios, sell losers, buy new, and what ever else they have been holding off doing to protect results. But, guess that could create high volume which could be positive over all.

Fosback's seasonality trading system says to stay invested from 12/20 to 1/12. I don't follow his system, but do reference it if planning to buy or sell any way.

Last year I moved to simplify and consolidate all investments and moved 90% into index funds to map to the total global markets. Have had over 50% that way for 5 years, but am now 90% there. Still play with 10% but even put that in those same funds if sitting on the sidelines.

Index funds work extremely well, are very low cost and very simple to manage. Just do an AA re-balance once a year and so far it has out performed everything else. It forces you to buy low and sell high if you stick to your plan.
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