Scaling Into a Trending Up Market

Over the next few weeks, I plan to scale in the remaining additional funds into our different investment strategies.   Since the end of January 2018, I've been scaling into the dip.   In most cases, this has been a profitable approach.   Although I started purchases at higher levels, I have also made several purchases, hopefully, near the bottom.   In many cases, the short term bottom has already happened.  In a small percentage of stocks/strategies, the price/valuation is still finding the bottom.

At this point, I believe the correction is over and the market may soon cross new highs.  Rather than wait for the next correction, I plan to invest the remaining funds as the market advances.   However, I will do this by scaling in (buying small lots over time), just in case the market pulls back before making its next advance.

For more on Strategies and Plans Ideas, check back every Monday for a new segment.

This is not financial or investment advice. Please consult a professional advisor.

Copyright © 2018 Achievement Catalyst, LLC

Stock Market Breakdown ... Or Breakout?

It's been a little over 6 months since the most recent correction began in January '18. I know some still believe the market is in correction and will test the previous lows and may even breakdown.  However, with the market only about 3% below previous highs the recent correction possibly ended in March '18. 

Since the average time for a correction to reach a new high is 4 months (which is the end of July '18), I'm thinking there is also a good possibility of a breakout.  In my opinion, the market is more likely to advance over 3% than decline 8% in the next few weeks.   

.Breakdown or breakout?  I planning on a breakout.

For more on New Beginnings, check back every Sunday for a new segment.

This is not financial or investment advice. Please consult a professional advisor.

Copyright © 2018 Achievement Catalyst, LLC

Why This Bull Market Can Continue

"The reports of my death are greatly exaggerated." ~ Mark Twain

Recently, there have been an increase of articles cautioning the end of the bull market.   The reasons are numerous:  the longevity, PEs, increasing interest rates, narrowing breadth, geopolitical uncertainty, and, of course, Donald Trump, whose actions extends the list of specific concerns further.

It is a great list of concerns.   However, I think the opposing view, that the bull market can continue, has merit also.

• This is the slowest post WWII economic recovery.  One would have expected a steep recovery given the depth of the recession.  However, the slow recovery may be delaying a future recession since business have not yet over invested and created excess capacity.
• Businesses are still cautious.   Most businesses seem to be still under investing and cutting costs, especially the industrial ones.   No one seems expect an economic boom. 
• Still a great deal of pessimism.  Almost everyone I know thinks this bull market is unsustainable will end.  And there has been a increase in people predicting the onset of a bear market since the election of Donald Trump.  Bull market die when there is excessive optimism and irrational exuberance, neither of which are evident at this time.
• Finally, it is questionable whether this bull market started in March 2009 (bottom of bear market), March 2013 (crossed previous high), or Feb 2016, (the latest major correction).  So this bull market may not be that long in the tooth.

My sense is that this market is still intact, but may be vulnerable to a significant external event.  But until then, this bull market can continue.

For more on  Reflections and Musings, check back every  Saturday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2018 Achievement Catalyst, LLC

Resigned to a Progressive Takeover

In 2016, I was resigned to Hillary Clinton being our President for the next 8 years.   No way that Donald Trump could win.   Imagine my surprise when I woke up at 2AM to Donald Trump in the lead.

Similarly, I am resigned to the Democrats retaking the majority in the Senate and the House in the 2018 midterms.   

For more on  Reflections and Musings, check back every Saturday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2018 Achievement Catalyst, LLC