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The beauty of paint-by-numbers investing

Discussion in 'General Investing Discussion' started by Tropo, 28th Jan, 2009.

  1. Tropo

    Tropo Well-Known Member

    Joined:
    17th Aug, 2005
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    3,396
    Location:
    NSW
    The beauty of paint-by-numbers investing

    The method is not complicated. It uses only two factors - economic growth and inflation.
    Based on these two, it divides the investment environment into four periods, each of which favours a different investment category.
    Here they are, free of charge:
    reportonbusiness.com: The beauty of paint-by-numbers investing
     
  2. Chris C

    Chris C Well-Known Member

    Joined:
    2nd Apr, 2008
    Posts:
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    Location:
    Brisbane, QLD
    I like the principle though you need to be quite a forward thinking individual, as acting once the data is confirmed (normally a few months after events) the majority of gains have already been made. So in that sense it would appear to be a strategy for the forward looking economists who are willing to sit down and project the likely results of present circumstances into the future. I think these two paragraphs sum it up:

    I tend to agree with this assessment of moving from a weak deflationary period into a weak high inflationary period as a result of high volumes of printing in the US along with continued increased pressure of limited commodity resources in the not too distant future (6 - 18 months). I think bonds for the most part have run their course there isn't a lot of upside to them anymore.

    I'm interested to read what everyone else is predicting for the future.