Bonds Point To Bull Market In Stocks

Bonds Point To Bull Market In Stocks
Garman sees a banner year ahead for stocks: a near 42% gain for the small companies that make up the Russell 2000 index and a 22% rally for the larger ones in the Standard and Poor’s 500.

52-Week High Stocks

Another strategy for finding stocks to evaluate is to look at the 52-week high list.

But, hold on. Doesn’t that violate the rule against buying high? First, that rule only applies to stocks that have been artificially bid up by some type of market over-reach.

You can find those on the 52-week high list, but they are easy to spot and eliminate (a stock whose price has jumped 30% in one day).

You are looking for stocks that have shown steady growth over a long period to earn their way on to the list.

When you identify these stocks, begin your evaluation. The market has done much of your work by rewarding the company with an escalating stock price, but don’t stop there.

http://stocks.about.com/od/advancedtrading/a/Winners042805.htm

Timing Model for High-Yield Bonds

This timing model is outlined in the book "Opportunity Investing" by Gerald Appel.
He calls this strategy "1.25/0.50".

This timing model presumes that if high-yield bonds have been in a downtrend, and then rise in price by 1.25% from a low price level, the downtrend has come to an end (a buy signal).

The model also presumes that if high-yield bond funds have been advancing in prices, a decline of 0.50% in the prices of such funds from their most recent high level indicates that there are good chances of ongoing decline (a sell signal).

What to do with $10000 in TFSA

What to do with $10000 in a tax free savings account with a medium term time horizon and basically no risk?
-buy an eight year $5000 Province of Ontario strip bond for $3400 with a yield of 4%.
- buy the TSX 60 index XIU with the remaining $1600. You now have basically risk free market exposure.
- keep $2500 in the Claymore T-Bill account CMR to capture rising interest rates
- keep $2500 in XRB the real return bond ETF to capture rising inflation

http://www.theglobeandmail.com/globe-investor/investment-ideas/a-stash-for-cash-or-investment-vehicle/article1396665/

Some Seasonal Timing Strategies

Here are some seasonal timing strategies as based on the book "All About Market Timing" by Les Masonson.

1. Invest in the stock market on November 1 of each year. Then sell on April 30 of the following year (and go into cash equivalents) until November 1 of the next year.

2. Invest in the stock market on the last day in October of each year, and then sell on the fourth business day in May of the following year. This had better results than the first strategy.

3. Use the MACD indicator in conjunction with the first or second strategy. Place the MACD indicator with settings of (12,25,9) on the bottom of the chart. In the April–June time frame look for a MACD crossover signal to the downside (below its “0” line) to sell your investments. Likewise in the October–December time frame look for a MACD crossover signal to the upside (above its “0” line) to get into the market.

4. Avoid the stock market entirely each September. Simply sell on the last day in August and buy on the first day in October.

A variation of the last strategy is avoid both September and October. That is buy on the first day of November.

Top Investment Books

Here is a list of top investment books recommended by Dick Davis in his book The Dick Davis Dividend: Straight Talk on Making Money from 40 Years on Wall Street

Top 25 Investment Books

Against the Gods - Peter Bernstein
Annual Letters to Stockholders - Warren Buffett
The Battle for the Soul of Capitalism - John Bogle
Beating the Street - Peter Lynch
The Coffehouse Investor - Bill Schultheis
Common Sense on Mutual Funds - John Bogle
Common Stocks and Uncommon Profits - Philip Fisher
Contrarian Investment Strategy - David Dreman
The Essays of Warren Buffett - Warren Buffett
Fooled by Randomness: The Hidden Role of Chance - Nassim Taleb
The Four Pillars of Investing - William Bernstein
The Future for investors - Jeremy Siegel
The Informed Investor - Frank Armstrong
The Intelligent Asset Allocator - William Bernstein
The Intelligent Investor - Benjamin Graham
The Little Book That Beats The Market - Joel Greenblatt
The Only Guide to a Winning Investment Strategy You'll Ever Need - Larry Swedroe
The Only Investment Gude You'll Ever Need - Andrew Tobias
A Random Walk Down Wall Street - Burton Malkiel
Stocks For The Long Run - Jeremy Siegel
Technical Analysis of Stock Trends - Edwards abd McGee
Unconventional Succcess - David Swensen
The Warren Buffett Way - Robert Hagstrom
Winning On Wall Street - Marty Zweig
Winning the Loser's Game - Charles Ellis