Subscribe to Our Free Newsletter
 


HOME
LOGIN
SUBSCRIBE

Strategy Information

Subscriber's Q & A
Pro Timer Strategy
Conservative Strategies
SmallCap Fund Timer
Bond Fund Timer
Gold Fund Timer
Sector Fund Timer
U.S. Dollar Fund Timer
ETF & Stock Timer
Stock Market Timing
Testimonials

Subscriber Reports
WEEKLY COMMENTS
Editor 's Report
ACTIVE STRATEGIES
Sector Fund Timer
SmallCap Timer
Gold Timer
CONSERVATIVE
Conserv. S&P Timer
International Fund Timer
Conserv. REIT Timer
Diversified Timing Port.
AGGRESSIVE
Bull & Bear Timer
ETF Timer
Bond Timer
U.S. Dollar Fund Timer
Stock Timer

About Us
Subscriber Support
Email Policy
Terms of Use
Privacy Policy
Prior Commentaries
Editor's Blog
Site Map

Subscriptions
Free Two Week Trial
Free Timing Newsletter

 
 


  •
      Weekly Report from the Fibtimer Stock Market Timing Services


The Case For Market Timing Diversification

Definition: "Diversification" - a portfolio strategy designed to reduce exposure to risk by combining a variety of investments which are unlikely to all move in the same direction.

Many Market Timers Pay Little Attention

As we have written before, "market timing is the following of a long term strategy to profit from the financial markets, that also protects us from the inevitable down trends that occur."

Many investors who understand the potential of market timing, pay little attention to the potential of diversification. Many jump right into an aggressive timing strategy with little thought about how they will handle a loss.

But there is a way to jump right in, and also realize the long term potential of even the most aggressive strategies. It does require a bit more work, but not all that much. Just a few minutes a day to check for changes and make adjustments.

Aggressive Market Timers Can Benefit

Many market timers already follow well defined investment plans that include diversification. But as we just discussed above, some do not.

If you are one of those who do not, consider changing. Diversification is not only for those who are afraid of volatility. It has an important place in even the most aggressive of portfolios.

We have been market timing since the early 1980s and although we are aggressive, we diversify our timing funds, not just for safety, but also to "enhance" our profit potential.

"During a bull market, you will be fully invested most of the time, except in those few industry sectors that are not doing well."Those who follow our Aggressive Bull & Bear Pro Timer strategy will make a great deal of profit over long time frames.

Because the markets tend to trend most of the time and the aggressive strategies will catch the major part of all long-term trends in "both" directions.

But non-trending markets can be quite frustrating and aggressive market timers, in our experience, become frustrated more quickly than most.


Fibtimer HALF PRICE Offer!

Get Our Full Reports Every Weekend
plus Updates Every Trading Day

These FREE reports are great, but getting our timing signals daily is what you need to beat the market!

only $12.25 monthly for full year
Bull & Bear Timer
10 Year Results

Fibtimer Timing + 524 %
3 Year Results
 Fibtimer Timing  + 142 %

Sleepless nights as your investments are consumed by a volatile Wall Street? Consider Fibtimer's trend trading services. Our trading plans are unemotional and are always invested with the trend, which ever way it is headed.

Fibtimer's timing strategies MAKE MONEY in BOTH advancing & declining markets. No more sleepless nights. No more upset stomachs.

We profit year after year after year. In fact, we have been timing the markets successfully for over 25 years.

Join us and start winning!

We are currently offering HALF PRICE to new and returning subscribers.

--- only $12.25 monthly for full year

Special HALF PRICE Offer - CLICK HERE NOW

Aggressive timers.... try this strategy: Use the Aggressive Bull & Bear Pro Timer strategy for 20% of your timing portfolio. Use the Sector Fund Strategy for 50%. Divide the rest between Bond Timing, Small Cap Timing and Dollar Timing strategies.

Although the sector funds go to cash on sell signals, these industry specific funds are big winners when they trend. Often they will trend much further, by 100% to 200%, than the rest of the market.

Stick with the sector funds that follow major industries, such as Health, Technology, Internet, Energy, Financial Services. Most of the sectors we follow are major sectors. Pick five that are affected differently by the economy. Example; do not choose Health and Biotech which have similarities.

When the bear growls, you will have 20-50% of your portfolio profiting on the short side, or in cash, plus those sector funds that are profitable even during a bear market (there are always some).

You will make money, but have only a small percentage of your timing portfolio at risk.

During a bull market, you will be fully invested most of the time, except in those few industry sectors that are not doing well.

Diversified portfolios have a dramatic effect in controlling volatility and drawdowns. Yet can be extremely profitable over time. The best of all worlds.

Fibtimer already has a Diversified Portfolio Strategy that can also be used. It divides your timing into five distinct investment areas. Interested subscribers should check it out. It does not include the sector funds but it is a well diversified strategy.

Even Conservative Market Timers Can Benefit

Those conservative market timers who are willing to devote at least a little extra time, can enhance their profits by adding the Sector Timer strategy as a percentage of their timing portfolio.

Being conservative does not mean you cannot be active. Using the Conservative S&P Timer strategy will always do well over the years because it is designed for long trending markets, and makes changes infrequently.

But if you used it as a base for your timing portfolio, say for 50% to 60% of it, you can easily be more active with the other 40% to 50%, and still be well within the guidelines of "conservative" investing.

Again we suggest using the Sector timer. In this case "because" it goes to cash during sell signals, and because it follows a diversified strategy of its own (multiple positions are always used), it can add considerably to your profit potential (sectors tend to trend longer and higher during bull markets).

For those who prefer using ETFs, use the major industry sectors in our EFT strategy.

Each His Own Style

Diversification can obviously be quite varied. Each market timer will have his or her own style. Even a very basic plan can be made more stable with diversification.

For example, if your core timing account follows the Conservative S&P Timer strategy with 70% of its funds, allocating 15% for the aggressive Pro Timer strategy and 15% for the Bond Timer strategy will cover most bases, and yet still offer an additional level of safety.

Conclusion

Consider at least some diversification for your market timing funds.

We mention the Sector Timer in several the diversification scenarios above. This is because it is "already" well diversified (at least five different industry sectors should be used by subscribers who use this strategy), yet has the tremendous profit potential inherent in industry specific funds (sector funds usually trend farther, percentage wise, than the general market). The ETF Strategy can also be used of course.

Diversification can dramatically help control volatility and drawdowns.

Diversification, when properly applied to your portfolio, will actually enhance your profit potential over time.


Recent articles from the Fibtimer market timing services;



© Copyright, Market Timing Strategies, Inc., All Rights Reserved.     

Fibtimer reports may not be redistributed without permission.

Disclaimer: The financial markets are risky. Investing is risky. Past performance does not guarantee future performance. The foregoing has been prepared solely for informational purposes and is not a solicitation, or an offer to buy or sell any security. Opinions are based on historical research and data believed reliable, but there is no guarantee that future results will be profitable.


Top of the page


 

© Copyright Market Timing Strategies Inc All Rights Reserved

Design by LightMix