It's not freaking rocket science

Ok-someone was asking me how I manage money and I told him I compare stocks bonds and cash as a starting point and whichever is strongest based on relative strength is where i over weight. Since 3/09 its been stocks and from there I look to see what is stronger large cap,mid cap, small cap. Hands down its been small cap than mid cap and lastly large cap.

Well when do you make changes he asked? I told him I follow the trend,when the trend changes I change.

I've been doing this for quite a while and I can tell you its not rocket science. All one has to do is follow the trend. Of course most people aren't interested in watching their money so they have someone fill out a form that shows them to be conservative, aggressive,fairly aggressive,hugely aggresive and so on and so forth. And this person than allocates their money to 5-10 mutual funds and in all likelihood they rarely ever hear from that person again and they stay allocated that way for ever. They usually discover this after some market disaster. Once that passes and they have regained most of their money they go back into hibernation until the next disaster. Never realizing that maybe they could have avoided some of the disaster by just following the trend.

Back in the 2001-2002 dot com era,if they would have followed the trend they could have saved alot of the down.In 2008,the housing disaster they could have followed the trend and avoided alot of the down, And than in 2009 when the market turned up,the trend changed to positive,they could have mad a lot of money .

Every major firm on wall street is constantly telling you where they "think" the market will be in 2 months, they tell you where they "think" the economy is going.The sad part is peopl actually rely on these asinine predictions. No one can predict anything. It is what it is. And you need to understand that if you want to hold onto your money.

If these guys were so freaking smart why didn't they tell you to get out of the market back in the dot com era or that housing prices were going to collapse