Since the new primary bull market trend was confirmed, I have been watching several investment firms and newsletters.
Many of the newsletters seem to be saying one thing: that the current trend must end soon. While the firms seem to be saying that gravy train will never end, but then are crying doom every time the market drops. It's insanity.
For example, I used to follow Casey research extensively, and they were always predicting a black swan was just around the corner. Eventually I realized the only black swan was the one they were predicting would come imminently, but will likely not completely unfold for years ... perhaps even decades.
I'm extremely wary of most newsletters, and have done 300% better since switching to a passive, index-based portfolio. I re-balance once or twice per year, and I average into the market over time. Sometimes I'll wait for a sell-off.
Two commentaries which I still follow for their excellent macro perspective are the Zack's daily commentary, and the Equedia letter. Although, lately there haven't been any Equedia letters. Another system I follow is the Canadian Couch Potato. Holy Fantastic, Batman!
With that, now is a good time to deploy another tranche into the markets. The S&P is bumping the 50-day moving average again and again, and Dow theory is still confirming a primary bull market trend. But frankly, if stocks were tanking, it would also be a good time to get in ... in fact, it would be an even better time to get in.
I don't believe this is the time to speculate on low quality penny stocks. If you are a stocks person, I would stick to high quality companies with healthy balance sheets. Also, these companies should ideally have a track record of creating value and be trading at a lower multiple when compared to the index.
As for index investors, I highly recommend breaking up your portfolio based on your investment profile: Very Conservative, Conservative, Balanced, Growth, Aggressive Growth.
I highly recommend the simple approach of the Canadian Couch Potato.
