I'm developing my plans to invest and manage a lump sum pension, and would appreciate some philosophical input from the brain trust. Generally, I believe that there are technical indicators that if followed responsibly, can improve long term returns in the stock market. There are several schemes out there that are near perfect when backcasted. For clarity, I'm referring to long term trend indicators and not "catching the bottom". I do believe it is impossible to catch the bottom or the top.
My thoughts are to manage an equity allocation within a range. For instance, down to 40% in a bear trend and up to 60% in a bull trend.
I know that many experts dismiss this approach and call for constancy. To me this is because people tend to behave emotionally and many end up buying or selling at the worst possible time.
I'm wondering if many here follow this approach and have had success with it?
BayBum
My thoughts are to manage an equity allocation within a range. For instance, down to 40% in a bear trend and up to 60% in a bull trend.
I know that many experts dismiss this approach and call for constancy. To me this is because people tend to behave emotionally and many end up buying or selling at the worst possible time.
I'm wondering if many here follow this approach and have had success with it?
BayBum