My name is Max Power, an alias for reasons to be revealed soon, and welcome to my Beta Test site. I have developed a technically oriented investment strategy designed to determine general stock market direction and pinpoint low risk entry points for selected ETF’s and mutual funds. I have over 30 years of investment experience and believe all financial market strategies, fundamental, quantitative, cyclical, etc. will inevitably reveal technical supply and demand patterns through charting.
I have found the financial markets to provide an array of tells akin to a daily murder mystery. It would be challenging enough if those tells were static. What compounds the mystery is those clues often change their stripes. For instance the Bull Market period prior to the 2008-09 financial crisis most Tactical strategies generally outperformed Buy and Hold (Strategic) models. When the Fed employed its major stimulus programs in 2009 the excess liquidity moved the market higher in a grinding fashion clearly favoring the Buy and Hold crowd for the next five years.
Another dynamic that challenge money managers are how relationships with other asset classes and indicators often morph. For instance stocks and the price of oil have been mostly inversely related over the years. The rationale for that was most believed rising oil/gasoline prices were a proxy tax on the consumer. The two year period leading to late 2016 saw a near one-to-one parallel correlation. The theory with the shift was that rising oil was an indication of rising demand hence stronger business activity. When spotted these types of shifting relationships can provide insights to trends and inflection points.
I believe the excessive global debt taken on over the last couple of decades will be an anchor around the neck of economic growth. We are probably in a decade long period of slow to moderate growth punctuated by a recession here and there. The business cycle will probably contract in this scenario. This could leave the world’s equity markets mired in an expanded, frustrating trading range. In this type of environment rally profits could be easily seized by succeeding corrections if not taken on a timely basis. Post 80’s Japan has experienced a similar multi-decade fate and is still in the grip of an anemic economic driven equity trading range.
I believe Buy and Hold will struggle in the coming years as the world continues to attempt to deleverage. Inserting or expanding a tactical/dynamic strategy into your portfolio makes a lot of sense to me at this time.
The site provides an almost 3-4 times a week daily commentary “The Power Perspective” with an expanded version on the weekends. We also send out Power Trades if you would like to follow specific ideas. While we are in Beta Testing there is no charge for these services. All feedback is appreciated.
MAX’S BASIC TENETS
- Everything I said could be wrong, the market always has the last say
- It is okay to be wrong, it is not okay to stay wrong
- Not making a trade is a decision and often a good one
- Don’t lose money
WHY READ THE POWER PERSPECTIVE
- Market Insights – Help Expand Your Knowledge Base
- Easy To Read – Brief And Often Humorous
- Mostly Profitable Trades
- Free For Now
Disclaimer: Max Power and The Investor Zone make no guarantee or warranty about what is advertised above. Max Power and The Investor Zone is neither a registered investment firm nor a broker/dealer. We urge you to always conduct your own research and due diligence and obtain professional advice before making any investment/trading decisions. We will not be liable for any loss or damage caused by a reader’s reliance on information obtained on this page or corresponding web sites.
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Disclaimer: Max Power and The Investor Zone make no guarantee or warranty about what is advertised above. Max Power and The Investor Zone is neither a registered investment firm nor a broker/dealer. We urge you to always conduct your own research and due diligence and obtain professional advice before making any investment/trading decisions. We will not be liable for any loss or damage caused by a reader’s reliance on information obtained on this page or corresponding web sites. All feedback is appreciated.