A Rich Life

The Old Ideas on Saving & Investing Don't Work -- Here's What Does

Joachim Klement, CIO at Wellershoff & Partners: “I Can Confirm Your Experience With Long-Term Market Timing. It Does Work and We Use It In Our Firm a Lot. The Funny Thing Is That We Gain a Lot of Traction at Small- to Medium-Sized Banks and Asset Managers With This Kind of Investment Approach.”

by

I have sent e-mails to numerous people letting them know about my article reporting on The Silencing of Academic Researcher Wade Pfau by The Buy-and–Hold Mafia. Set forth below is the text of the response I received from Joachim Klement, Chief Investment Officer at Wellershoff & Partners, Ltd.:

Dear Rob:
>
Thank you for your email and the links to your blog. They are very interesting and I can confirm your experience with long-term market timing. It does work and we use it in our firm a lot. In fact, our strategic asset allocation is based on our market outlook for the next 5 years or so which in term is informed by reliable predictors of long-term future developments like the Shiller-PE.
>
The funny thing is that we are here in Switzerland and we gain a lot of traction at small to medium-sized banks and asset managers with this kind of investment approach.
>
Best regards
>
Joachim
>

I responded:

>

Joachim:

>

That’s a highly encouraging report!
>

Please understand that I come at this from the perspective of a journalist. What I want to see is a lot more discussion of these ideas because it is through discussion that knowledge advances. Yes, it’s true that long-term market timing works today for those who know about it. But it will work better in days to come as we learn more and more.

>

Thanks for taking the time to share your thoughts with me. You have added a nice measure of cheer to my Friday morning.

>

Rob