Re: Winning Strategies
Interest Rate/Moving Average/ NASDAQ strategy
This next strategy proves using interest rates as buy or sell indicator can lead to market beating returns.
This strategy is very simple to use, a buy signal is given when the FED lowers interest rate, and the NASDAQ is above, or crosses above a 22 week moving average. When the FED begins to raise interest rates, the NASDAQ position will be sold and the money moved into a money market fund.
That simple strategy resulted in a 5.7% annual return higher than the S&P500, and for 28 years! And with half the risk, since you are out of the market approximately 50% of the time.
1973 to 2001......annual return.....10K becomes
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Nasdaq/interest/
moving average .......14.1%.........$419,832
Nasdaq buy/hold.......10.8%.........$174,019
S&P500 buy/hold........8.4%..........$99,999
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