Blog Entries by LFM's
Chief Investment Strategist - Rick Luthman
July 1, 2009
**I know I said that I would post a copy of an LFM letter, and I will, but this article came up and I had to post this first. The letter is coming, but not today.**
On Monday in the USA TODAY there was an article on page 3B entitles "Buy and Hold can be a big loser".
It is just too bad that most investors still don't accept this. Many investors in the market are still down 40%, 50% or more EVEN AFTER THE BIG RALLY WE HAD SINCE EARLY MARCH!. The myth, put forth by many on Wall Street is that the only intelligent way to go is buy and hold, is simply wrong. "They" say "market timing doesn't work". If that is so let me ask you one question..."If market timing doesn't work, why do Wall Street firms pay their own market technicians lots of money to analyze stock charts?" The answer is that it does work. And applied correctly it works very well indeed. The reason "they" do this is because explaining to potential investors to buy good quality stocks for the long term is much easier than explaining why and how buying and selling will profit them more. Once they have your money, and you have bought into the "long term idea" they have basically no maintainence work to do. Then they move onto the next buy and hold target. This strategy reallys angers me because it is essentially fraudulent activity, and unsuspecting investors don't know any difference. Well I am here to tell you the truth.
(click here to read the rest of this entry)
|
 |
|
Welcome to Luthman Investment Portfolio Management.
A refreshing new approach to investing that's hardly new.
Luthman's investment portfolio management strategy is based on Benjamin F. King, Ph.D.(University of Chicago) research on statistical relationships between stock market trends and individual stock price movements. He determined that approximately 86% of stock price movement is directly correlated with overall stock market trends. To extrapolate upon this work, investors can significantly reduce their risk in stock ownership by decreasing their exposure to equities when stock market indexes decline.
Luthman Financial Management (LFM) is a technical financial advisor who uses technical stock trading (buy/sell decisions) and other techniques to preserve clients’ capital. Preservation of capital is the foundation of any successful investment program. To achieve preservation of capital, LFM uses these cornerstones…
- Active Asset Allocation: The process of moving money into a class of investments during market increases to maximize investment returns, and minimize investment risk during declines.
- Technical Analysis: Studying up and down trends of a particular investment as it compares to technical indicators. (75% emphasis)
Fundamental security analysis: Examining a company’s income statement, balance sheet, and other financial ratios. (25% emphasis)
- Diversification: Limiting investor exposure to any one stock and stock group.
|
|
