Skip to main content
No. of Recommendations: 4
Just curious as to what other folks are doing.

I follow all three of the FRED indicators (Industrial Production, Retail Sales, and Unemployment), and turn on timing when any of them is negative; which has scarcely happened since Jesse Livermore first published his work in Jan 2016.

But it's not something I'd decide by voting. I think you should consider how this form of risk management interacts with other methods that you use. If your normal timing is relatively twitchy, or if your usual holdings are relatively volatile or expensive to trade (e.g. small-cap stocks), you might want to wait until you get two negative indicators. Given that the main goal is to reduce whip-saws, it might make sense to set a higher bar (two signals rather than one) if the underlying portfolio strategy is in fact prone to whip-saws. Or maybe not: if you take on a lot of risk to begin with, maybe you want all the risk management you can get? As so often, a lot of investing comes down to temperament.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.