The Market Makes No Sense - That's Why Dynamic Investments Do
/As you have read on this site, and hopefully in The Dynamic Investment Bible, a major problem with investing today is that financial "experts" continue to try to predict future market movements based on a set of data that includes things like projected earnings, company guidance, interest rates, GDP projections, unemployment rates and on and on and on. Yet predictions based on these data points are more often wrong than right. A 50/50 success rate, the same as guessing, is seen as a great victory for an analyst.
An article published by finance.yahoo.com quoting Gluskin Sheff's David Rosenberg had it about right. It stated the following:
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The stock market usually doesn’t make sense
Much has been written about the stock based on hundreds of years of observations. And in all of those volumes, we walk away with a couple of things: 1) stock prices are arguably based on some theoretical value derived from future earnings; 2) it’s very hard to calculate that theoretical value; and 3) stocks rarely trade at or near any theoretical value.
To be a bit more specific: 1) stock prices have a relationship to earnings; 2) that relationship is complicated; and 3) that relationship rarely holds.
So, while the stock market could make sense or should make sense, “nobody ever said it had to make sense.”
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The entire basis of Dynamic Investment Theory is that the ONLY way to predict future market movements with any degree of validity is to look at past and present market movements. This is what Dynamic Investments do. DIs use only objective observations of market trends to generate trade signals. No subjective human judgments are used by this clearly superior investment type. That is why their returns are double, triple and higher than portfolios created by financial advisors today.
It is important that you read The Dynamic Investment Bible to understand exactly how, by not relying on the vagaries of "expert" analysis, Dynamic Investment returns are allowed to soar and with less risk.