Is profiting from news "Market in Turmoil" possible?
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ZnWC
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joined discussion · Jan 17, 2023 03:28
I'm skeptical about "Market in Turmoil" strategy 100% win rate
Is profitting from news "market in turmoil" possible? If you believe in theMerrill Lynch's Investment Clock(also known as Economic cycle), after stagflation (bear market) economy will recover (recovery stage) eventually. When that happened, bull market will begin. This is consistent with the"Market in turmoil" (MIT) strategy. But I don't think we can profit from the strategy as it is based on past performance. "Past performance may not guarantee present result" Remember"Long-TermCapital Management" (LTCM)and itsarbitrage strategywhich almost triggered a global financial crisis in 1998. I'm skeptical about MIT strategy 100% win rate and whether it can accurately predict when a Blank Swan Event (BSE) occurs. Nonetheless MIT strategy is one of the many indicators which can help us identify if the economy is recovering and hence bull market. Currently I hold$SPDR S&P 500 ETF (SPY.US)$and may buy more by DCA because I believe in Merrill Lynch's Investment Clock and have confidence that this ETF will reverse in 2H. Do your own due diligence if you want to invest.
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