As the SIP enters its 5th year of operations, its becoming increasing clear from our data collection efforts, that following SIP metrics will enable investors to advance modern portfolio theory ( MPT ) across a wide range of fronts.
The contributions to the knowledge base of MPT, is authenticated by the strict attention to understanding base line supply and demand, as it pertains to the stock market. Because SIP issues are free float calculated, proper characterization of market participation can be generalized effectively. Our integration of volume moving averages recognizes that all activity is occurring within the context of manifest intention against the free float relative constant.
Because the SIP is purposely constructed to advantage investors through recognition of systemic behavior, where price is the artifact, of any stocks particular now equation. Characterization of ownership is integrated at a utilitarian level for the purposes of identifying system participation by those occupying the same space as investors.
Modern portfolio theory places undue emphasis on prices marked to market, where performance is qualified to a current term, without respect for the near constant opportunity presented by systemic action.
The SIP differs materially from MPT in that the SIP metrics encourage operating from the lows, not the highs as MPT would suggest.
Over the last four years of application, SIP portfolios have advantaged themselves through constant recognition of broker dealer obfuscation within windows of time. Therefore our awareness and applied use of the knowledge that price is an artifact of prevailing systems intent, separates SIP metrics from other variations of MPT.
It is never lost on any manager of any SIP portfolio, that at any given time, specific issue prices wont reflect Investor goals for capital appreciation. This awareness is earned from hard won effort to understand our own data collection, whereas action accumulates in the direction of obfuscated intent.
Anyone who has followed this Blogs continuing history came to recognize price behavior differently. Before the history of this blog, obfuscation as a term of intent, was never used to describe the intermediate state between value and its recognition.
Yet everyday, obfuscation asserted its will as market social engineering. Offering the practitioner of SIP methodologies with a wholly different understanding of Portfolio development.
Adaptation to obfuscation became a process of selective action, seeking the quantum variable hiding within all MPT performance data.
As we look into the future, as investors, we focus on forward demand for our companies value added with respect to capitalist encouragement. In our view, capitalism happens from the edge, and the betterment of all systems outcomes, are changed by the influence of the prevailing demand for change itself.
Market participation is a characteristic of a free economy. The tug of war between systems interests is a pervasive phenomena of systems stressed by the fundamental pressure for change. Evolution and revolution are characteristics of the pressure for change.
Change can be catalyzed by the breakup of monopoly prices, by technical innovation, or by a host of demand creation dynamics which may spring from a hundred incremental sources within the demand dynamic.
No matter what the source of the catalyst, its ability to penetrate to the center of the lives of market occupants, has become a managed sequence of systems actions operating to protect system interests, whereas at the edge of innovation rests systemic action to incrementally block and tackle progress, in defense of system interests.
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