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On Sunday night we issued a SELL recommendation for MGLBX which was executed at the end of the day on Monday. The market had a sharp rally on Tuesday.
In general, our recommendations are designed to (1) make money during sustained periods of growth and recovery (2) protect assets during an extended market correction. Since we are still in an extended bear market correction, our bias is to protect our assets rather than make money on short term volatility.
Please do not get caught up in the emotions of the market. You could be thinking "Why did Kinetic Financial tell me sell an investment one day before a sharp rally... I've lost money because of their recommendation!"
Smart investment decisions are made by being systematic instead of emotional. Nobody can predict the future. Instead, we react to changes in the market by either selling our weakest assets during a downturn or buying the strongest assets during an upturn. We do not, and will not, make money from short term volatility. Instead, we seek to make money during *sustained* periods of recovery and growth.
Currently, the Model Portfolios are in line with overall market risk. Please track our model portfolio performance statistics over time and you will see that our fund recommendations are valuable. We are confident that our model portfolio performance will be substantially better than overall market indexes over the long run. When the market starts to recover, we will generally under perform in the short term while re-deploy our cash. However, we will generally catch up and surpass the indexes by investing in the strongest areas of the market and in funds that have high alpha.
Please send an e-mail to feedback@kineticfinancial.com if you have any questions.
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posted by Ramesh Agarwal & Team @
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