It is true that you should follow your primary analysis but in the
case where the markets break through a support or resistance level then
it is only logical that you have a back up plan which you can
immediately put to work. Our long-term client have seen very often,
even the alternative is be pointing in the same direction as the
primary, but simply within a different pattern.
For investors and analysts that truly understand the nature of the financial markets, realize that this is actually one of the major strengths of using the method that FM Wealth Management uses in our analysis, rather than a weakness, as those who do not understand it claim. So ask yourself does any army go to war without a contingency plan? So, if this analyst I noted above had used the FM Wealth Management analysis for his purchase of a leveraged ETF for a long-term hold, he would not have certainly held it for a 70% or more draw down.
This brings us to another point. Within this foolish statements made by this afore mentioned “analyst” he has clearly provided his definitive opinion that our approach “useless.” So our question to him and others who don’t understand the true nature of the financial markets is how much study have they put into FM Wealth Management analysis to be able to provide us with a truly reliable opinion?
In our opinion, most of these “opinions” are made by those who have no real understanding of how our analysis is supposed to be applied, or even why it works. We don’t usually resort to name calling there but reason we have suggested that their “opinions” are foolish is because only a fool would give an opinion on something they truly do not understand. I quote Ben Franklin:
“Any fool can criticize, condemn and complain and most fools do.”
We ask you, how much weight you would give to the opinion of someone who even though he has no knowledge of biology, claims that surgery is just useless? As we have here, you would dismiss this person as a fool and subsequently provide no weight to his opinion.
So where is the proof as far as how accurate we can be using our method of analysis, well please allow us to give you just a few of the major market calls we have made since we have been open:
So are we suggesting that everyone dump whom he or she are dealing with and run to us. No (but it is it is food for thought) but we would implore anyone who is reading this to at least consider adopting a methodology which tracks what truly moves markets, primarily market sentiment.
For investors and analysts that truly understand the nature of the financial markets, realize that this is actually one of the major strengths of using the method that FM Wealth Management uses in our analysis, rather than a weakness, as those who do not understand it claim. So ask yourself does any army go to war without a contingency plan? So, if this analyst I noted above had used the FM Wealth Management analysis for his purchase of a leveraged ETF for a long-term hold, he would not have certainly held it for a 70% or more draw down.
This brings us to another point. Within this foolish statements made by this afore mentioned “analyst” he has clearly provided his definitive opinion that our approach “useless.” So our question to him and others who don’t understand the true nature of the financial markets is how much study have they put into FM Wealth Management analysis to be able to provide us with a truly reliable opinion?
In our opinion, most of these “opinions” are made by those who have no real understanding of how our analysis is supposed to be applied, or even why it works. We don’t usually resort to name calling there but reason we have suggested that their “opinions” are foolish is because only a fool would give an opinion on something they truly do not understand. I quote Ben Franklin:
“Any fool can criticize, condemn and complain and most fools do.”
We ask you, how much weight you would give to the opinion of someone who even though he has no knowledge of biology, claims that surgery is just useless? As we have here, you would dismiss this person as a fool and subsequently provide no weight to his opinion.
So where is the proof as far as how accurate we can be using our method of analysis, well please allow us to give you just a few of the major market calls we have made since we have been open:
- In 2011 FM Wealth Management correctly called for gold to top out within $10 of its actual high.
- In 2015 correctly called for the metals markets to bottom out by the end of 2015.
- We called for a multi-year rally in the US Dollar Index (DXY) in June of 2011 when it was in the 74-75 area, (this is when most other analysts were calling for the “death to the dollar”). Clients will remember that our initial target was the 103.50 (set 6 years ago), the 1.618 extension of wave 1 and 2 (our projection). And, as we now know, the market struck a high of 103.80 at the start of 2017 before we dropped strongly off that region since then.
- At the end of 2015, we called for the S&P 500 Index (SPX) to drop from the 2100 region down to the 1800 region, which would we said would then set up a move upward where the SPX would reach a target of between the 2540 to 2610 region. For those of you that remember the early 2016, most analysts were quite bearish at the time, market even calling for a crash. As new clients were being told by their banks to dump, we were preparing for the 700+ point market rally we correctly called for.
- Back in November, a few days before the election, we were calling for the market to bottom out in December, and then continue to rally towards the 2500 region into 2017 “regardless of who wins the election.” As many remember, most market participants were quite certain that the bull market would come to an end if Donald Trump won. Mr Trump did win the election, and the market did rally to the 2500, this again substantiated our analysis, especially since it was the exact opposite of what most market participants were being told at the time.
So are we suggesting that everyone dump whom he or she are dealing with and run to us. No (but it is it is food for thought) but we would implore anyone who is reading this to at least consider adopting a methodology which tracks what truly moves markets, primarily market sentiment.
No comments:
Post a Comment