When the market cycles as it has recently, with the pundits calling “woe” and predicting the end of Greece and everybody else with it, discussion always comes back to whether you should hold part of your investment in gold.
Our view? Gold is a strategy for a very rainy day and those don’t come around very often. Otherwise the charts show that that the relationship between gold and stocks is very hard to predict and sometimes they even move together! We think the Bloodhound Model Funds provide a much better investment!
I was recently asked a series of questions during a webinar that I promised to answer on a blog. Here goes!
Question 1 “The future is not the same as the past, if everything you do is based on the past, how can it work in the future?
Let me start with two points of reference: (1) [...]
It is not very difficult to find investment strategies that produce high returns, if you use Bloodhound’s search engine you can find over 4,000 investment strategies that have averaged more than 20% a year over the last 23 years using a portfolio of 20 stocks. The challenge for the investor is the volatility of the portfolio value, and trying to decide whether a fall in value is reason to sell (for fear of further loss), or buy more (because falling prices can be an indicator of bargains, and dollar cost averaging is a good way to let value climb).
Bloodhound works by helping you select an investment system with rules that we apply consistently for you; we have also described the Bloodhound Model Strategies, 5 groups of strategies that reflect different levels of conservatism. Our blogs summarize the rules that they are based on, most of which are related to comparison with the SP500 index; they also show their average performance over 23 years, the compounded value of an initial $50,000 investment, and how they performed in 2008, 2009, and to date this year.
The question remains, how do I decide which would be right for me? Benjamin Graham said “the investors biggest problem is himself”; by which we believe he meant that investors find it very difficult to be consistent, and tend to become emotionally involved with the stocks they buy, which means they sell them are the wrong time. That is exactly why we devised Bloodhound as a system that would remove temptation from you, with a computer system that would give you all the decisions you need, when you need them.
