Jules, I don't know if this will help, but, I have a theory regarding the markets. I believe there are two macroeconomic trends shaping the markets.
1. technology.
The rate of technological change is growing and expanding exponetially. Which companies are positoned to benifit the most. Intel, Microsoft,Cisco.
2. Health Care.
The aging of the worlds industrial populations are growing rapidly. Which companies are positioned to benifit the most. Johnson and Johnson, Merk, Physer.
Question, how does one protect against a decline in these companies stocks?
Since the demographic shift of baby boomers nearing retirement, precludes the possibility of money disapearing from the markets in droves. Split 80% of your money between all these companies. It's very unlikely that all these stocks will tank at once. I have never done a serious study, but I believe, if money moves from technology, it will likely move into health care as a safe haven.
Sometimes it's the answers which are staring us right in the face, that we never see.
Regards, Michael
p.s. The extra 20%? Have some fun picking small companies like PTEC :-)
p.p.s. This theory doesn't count if Hillary and company start messing with health care again. |
