Monday, August 10, 2009

Success

I would like to share four ideas as to why I think our market timing business is enjoying success now, and why we could not have done this prior to a few years ago:

1. Internet – All the necessary data is now available practically real time on the internet. This is essential for those models which forecast next day market direction as we do at Four Seasons Capital Growth. This data was not available in such a timely manner until the pertinent financial data was put on the internet.

2. Rydex – Mutual funds such as Rydex and ProFunds are friendly to Market Timers. Before they came into existence, most of the mutual fund families had put a halt to frequent trades. Four Seasons could not be successful without the development of funds like Rydex. As a bonus, these companies added the inverse and leveraged funds, where Four Seasons can take either a long or short position with 200% exposure.

3. Volatility – When a program works, it is going to give good results when the market has small moves, but fantastic results when the market is making large moves. That is what we saw in 2008, where we were up 120% due to catching the large daily swings.

4. Bear markets - Even though Four Seasons does not care which direction the market is moving, it is much easier to sell a market timing approach when the stock market has had a large fall, and “buy and hold” investors are looking for a change. Four Seasons has certainly benefited from the down market of 2008, with many investors willing to try something new.

Have a great week and visit us at http://www.4csns.com.

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