A Rich Life

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

Long-Term Trend Investing

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I’ve written a Guest Blog Entry for the Stock Trend Investing blog titled Long-Term Trend Investing.

Juicy Excerpt: There’s one big flaw to Buy-and-Hold, however. When stocks are overpriced, it can take a long, long time for investors to obtain the average long-term return of 6.5 percent real. The Buy-and-Hold advocates don’t like for investors to learn how long it can take for the average long-term return to apply. How does the idea of waiting 25 years to see a good return on your money sound to you? If you don’t have 25 years to sit around waiting for the long-term to arrive, you might want to consider taking a pass on Buy-and-Hold.

Investing with the trends would do the trick. It can he hard to pull that off, however. You need to know a lot about investing to know which way to move and when to do so. That’s not a problem with Valuation-Informed Indexing. With Valuation-Informed Indexing, you go with the trend — but you go with the long-term trend, not the short-term trend.