In today’s fast-paced, global financial market place, investors are searching ways to participate in the stock market advances without getting mauled in periodic bear markets that destroy capital. This book (published in 2010) and website provide a non-emotional, time-tested approach to investing that provides a common sense method to accomplish that goal using a combination of three components: BDH Dashboard indicators, a list of selected ETFs, and relative strength analysis.
All the details that you need to become a self-confident and self-directed investor are provided in this complete investing plan. All the information you need to obtain to track the market and the ETFs that you invest in is provided free on the weekly blog to this site including all the required Internet links. In about five minutes every weekend, you can monitor the markets and your ETF investments to determine if any changes are necessary.
Please note that the original strategy in the book was simplified and does not mirror the book’s ETF universe or all of its indicators. You can read more about this in the FAQs.
2016 Dashboard Performance
The stock market had a good performance overall after the 15% decline early in the year. For the year, the DJIA led the way up 13.4%, followed by the S&P 500 up 9.5%, and the NASDAQ COMPOSITE up 7.5%. The BDH strategy was only able to earn 3.2%.
2015 Dashboard Performance
The stock market for the most part had a down year. For the year, the NASDAQ COMPOSITE was up 5.7%, but the DJIA was down 2.2%, followed by the S&P down 0.7% . The BDH strategy lost 2.3%
2014 Dashboard Performance
The Dashboard performed well in 2014 with a gain of 13.63%. This compares to a performance of about 7.50% gain for the Dow-Jones Industrial Average, 11.4% gain for theS&P 500 and a 13.4% advance for the NASDAQ Composite .
2013 Dashboard Performance
This past year was one of the best performing years for the stock market since 1997. For the year, the DJIA jumped 26.5%, the S&P 500 advanced 29.6%, and the NASDAQ Composite catapulted 38.3%. Not so for the BDH strategy which increased only 6.10%. This performance was very disappointing. Interestingly, the average hedge fund run by highly-paid professionals advanced about 9.3%, after fees (according to data tracker HFR), which is also well below the market averages.
During the year there were eight Dashboard buy signals ( “3” only, not counting “4”) and seven Dashboard sell signals. The most recent signals lost money as the market reversed direction soon after the new signal was given, so any gains were quickly given up. Moreover, the 3% recommended stop LIMITs produced more losses than gains. In retrospect, the 3% stop LIMIT order worked against the strategy as it was much too tight resulting in numerous whipsaws in and out the market. Also, the same or a quite similar basket of ETFs were re-entered at a later time at a higher price on multiple occasions.
2012 Dashboard Performance
The Dashboard signals performed well in 2012 compared to the market averages. For the year the Dashboard produced a gain of 14.40% as measured by www.dark-liquidity.com,an independent site, compared to 7.30% gain for the DJIA, 13.4% gain for the S&P 500, and 15.9% gain for the NASDAQ Composite. These figures are all without dividend reinvestment. Be aware the BDH strategy was out of the market in cash or short-term bonds for 133 days or 36.3% of the year. Therefore, on a risk-adjusted basis the BDH strategy did better than the benchmarks which are always 100% invested (assuming an investor uses an index mutual fund or ETF). The average stock mutual fund gained 14.6% in 2012 with dividends reinvested according to Lipper, as reported in USA Today, page 2B, January 4, 2012 in article titled “Fund haters are only hurting themselves”.
Interestingly, the average Hedge fund performance was much worst at 5.5% in 2012 as tracked by HFR (page R4 WSJ, January 2, 2012). The market’s ups and downs were not handled well by most Hedge funds. And don’t forget that the typical Hedge fund charges 2%/20% which means 2% of assets under management and 20% of profits. So if you thought that Hedge funds have the edge in investing your money, you may want to rethink that premise.
2011 Dashboard V2 Performance
The Version 2 Dashboard was introduced on March 12, 2011 in the blog. This is a more simplified approach that uses only four indicators instead of the original eight . Make sure to read the report and the data tables provided in the blog.
The Version 2 Dashboard performance for 2011 was worse than the NASDAQ Composite due to frequent trend changes. In addition, hedge fund managers on average lost about 5% for their clients in 2011. That should indicate how difficult 2011 was to make money. The Dashboard results are provided in this link:
2010 Dashboard Performance
The first stock market signal was issued on this website on April 27, 2010. THrough December 31, 2010, the Dashboard gained 9.07% compared to the NASDAQ’s 6.84% increase. That 2.23 percentage point difference was accomplished even though the Dashboard was out of the market for 75.8% of all the days. Here is the performance data:
DashboardV2 Chart with Up-to-Date Buy and Sell Signals
The link below provides all the recent V2 Signals:
All the signals since inception are shown on the chart below (click on it):
Why This Website Was Developed
This site was developed specifically for investors who have read this book and want to use its strategy to build wealth during market up trends and protect their principal during down markets. If you happened to arrive at this website from another source, that is terrific. Now you have an opportunity to learn about a better way of investing than continuing with the unsuccessful buy-and-hold approach. Make sure to review the FAQs before going to the weekly blog postings to make sure that you understand how the strategy works, as well as how to easily obtain the market indicators on the blog, and to review the back-tested results.
If you haven’t purchased the book yet and would like to benefit from this website, I suggest that you just click on the top tab on the right (Buy It) and get going. This book is available not only in hardcopy, but also in the Nook and Kindle editions, so you have no excuse not to buy it. The Kindle edition can also be purchased for a laptop or desktop PC, not just the handheld device, by first downloading the free PC software from Amazon. When you download the book, it will be available in seconds for the nominal price of $9.99.
This book provides a practical, easy-to-implement rule-based investing approach that investors can master quite easily. Of course, to use the strategy you need to obtain the updated data on the Internet and I provide you with these free sites to you in the book.
This book will assist you in using the strategy presented in this book to become smart profitable investors going forward. Of course, your risk tolerance, covered in an early chapter, will determine how you allocate your assets between equities and fixed income vehicles. Profitable investing is accomplished by first determining the market’s health using a group of market indicators, and then investing in a limited universe of exchange-traded funds, selected by a weekly relative strength analysis. Once the market trend has changed all equity positions should be sold and the proceeds are placed safely in cash awaiting the next buy signal.
After reading the FAQs, go to the blog page for the latest market commentary, Dashboard readings, and backtest results (June 7 blog and also in the FAQ tab).
The blog is updated weekly on Saturday or Sunday to keep you informed as to the Dashboard and market conditions. And of course reader comments and questions are always welcomed.
The information offered on this site is for educational purposes only. Investing and trading involves risk, and the user is solely responsible for any investing or trading decisions that he or she undertakes. Historical stock market performance is no indication of future results. Although the author has taken every precaution to present accurate data, he assumes no liability for errors or omissions. It is offered without warranty of any kind. All concepts and ideas presented should be taken as points of departure for the individual’s own research. You are responsible for your own investment/trading decisions. Recommendations are made without any consideration of your personal financial sophistication, financial situation, investing time horizon, or risk tolerance. Investments recommended may not be appropriate for all investors. Use of this material constitutes your acceptance of these terms.