Investment strategies are important, because they eliminate investment decisions made on the basis of emotions rather than an objective process.
Long Wave Cycles & Why Wall Street Doesn’t Use Them.
By long-wave trends, we are talking about a credit expansion/credit contraction cycle that lasts 60 to 70 years. Within that cycle, there are four periods when, generally, there are certain kinds of investments that do very well and other kinds that do very poorly. We think of these four periods of time as “seasons” of the Kondratieff cycle, and in many ways they are similar in mood to the seasons of the year. So we consider the Kondratieff cycle to be characterized by spring, summer, autumn, and winter.
Investing versus Trading
Jay’s newsletters vs Chen’s newsletters
Jay Taylor’s Gold, Energy & Tech Stocks newsletter employs a buy-and-hold strategy that is based on value investing and secular market trends. As such, Jay is less interested in short-term trends than is Chen Lin, editor of What is Chen Buying? What is Chen Selling? That publication is geared toward profiting from shorter-term moves within longer-term trends.
The advantage of buy-and-hold strategies is that you do not need to spend nearly as much time to watch your investments and you avoid missing the next big move if you happen to be out of the market when it takes place.
The advantage to trading rather than investing is that when perfected, you can generate considerably bigger returns by selling at or near tops and buying back in at near or near bottoms during interim market moves.