Beat the Market: Win with Proven Stock Selection and Market Timing Tools: Win with Proven Stock Selection and Market Timing Strategies

Description

“In this compelling book, Gerald Appel distills a lifetime of learning about what works on Wall Street into key principles of investment success. Whether you are new to the world of finance or you’re a veteran portfolio manager, you will gain from Gerald’s innovative research and his discerning insights into price behavior.” Nelson Freeburg, Editor and Publisher, Formula Research   “This new book by Gerald Appel follows the rich legacy he has established over the years; it is a treasure chest of valuable advice which bestows on the reader the benefit of his decades of investment experience. It receives my highest recommendation.” Edward D. Dobson, President, Traders Press   You can clearly outperform the stock market indexes and a “buy and hold” approach to investing. Leading investment expert Gerald Appel shows you how. Appel introduces The Weekly Stock Market Power Gauge that employs three specific market timing indicators that have had excellent performance histories going back as far as 1970. These timing indicators enable you to gauge the market strength and can be maintained by almost any investor in only a few minutes per week.   Using Appel’s techniques, you’ll learn how to forecast the likely direction of the market, and its relative strength compared with fixed income and other investments. The book provides exact buy-sell indicators, with specific signal generators and track records for readers to follow. In addition, Appel’s techniques help you identify the specific mutual funds, exchange-traded funds, and market sectors that are likely to be most profitable.   Simply put, Appel shows you what information you need to forecast the direction of stock prices with high probabilities of success, where to readily locate that information, how to interpret that information, and when to enter and when to exit the stock market. Gauge the market’s true inner pulse... ...and identify major market shifts in time to leverage them Optimize your portfolio’s blend of risk and reward Use proven timing models to systematically reduce risk and maximize profit opportunities Master powerful momentum investing techniques Win by going with the flow, not against it Select the right equities, ETFs, and mutual funds Objectively choose the best investments in any market environment Contents Introduction Prologue CHAPTER 1 Your Basic Investment Strategy The Best and Worst Mindsets for Profitable Investing CHAPTER 2 Bond-Stock Valuation Models—A Key Market Forecasting Tool The Search for Something Simple, Useful, and Stable Bond-Stock Valuation Models Investments to Be Compared The General Concept of Bond-Stock Valuation Models Money Goes Where It Is Best Treated Interest Rate Relationships and Past Performance Further Observations Further Evidence CHAPTER 3 Government Bond Yields Compared to Earnings Yields Implications of the Safety of Government Instruments Averaging Yields of Longer-Term Treasury Notes and Shorter-Term Treasury Bills Compare Earnings Yields from Stocks to Interest Yields, This Time from the Highest Grade of Government Income Issues Commentary Handling Money Management at Other Times CHAPTER 4 Achieving a 92.59% Profit Ratio 92.6% Reliability: Increasing Returns and Reducing Risk by Combining Your Two Bond-Stock Valuation Models The Basic Principles of the Double-Entry Bond-Stock Valuation Timing Model Condition #2 Blended Performance (1981–2007) Periods with Lower Profit Potential A Signal to Stay Absolutely Clear of the Stock Market Summary CHAPTER 5 How to Gauge the True Inner Pulse of the Stock Market The Significance of Breadth in the Stock Market Advance-Decline Indicators Required Data to Calculate Breadth Signals The Calculations Required for the Weekly Breadth Reading The Next Step—Creating a Six-Week Exponential Moving Average of Weekly Readings The First Step in Maintaining Exponential Averages: The Smoothing Constant Applying the Formula: First Example Calculating the Exponential Moving Average of the Weekly Breadth Reading Summing Up Buy and Sell Signals Generated by the Six-Week EMA of the Weekly Breadth Reading Final Review The Historical Performance Record of Breadth Signals Final Thoughts CHAPTER 6 Indicator Synergy Plus Characteristics of TWIBBS Evaluating the Benefits of TWIBBS Final Thoughts A Stock Market Power Gauge CHAPTER 7 Creating the Best Blends of Risk and Reward in Your Portfolio Analysis of Table 7.2: The Best Pockets of Investment Blends How the Timing Models Allow You to Take Greater Risks, While Maintaining a High Degree of Safety The Nest Is Empty—A Final Burst of Accumulation Retirement Period A Quick Review of the Features of All the Timing Models CHAPTER 8 Putting Together Your Winning Investment Portfolio The First Step: Diversification How and Why Diversification Works How Diversification Performs Its Magic A High-Velocity Diversified Portfolio for Aggressive Investors Past Performance Summing Up CHAPTER 9 A Primer for Profitable Mutual Fund Selection Open-Ended Mutual Funds: Professional Management, Ready Liquidity, Wide Choices, Popularity, But… All Buyers and Sellers Pay the Same Price Each Day Liquidity Has Been Broad and Flexible, But Not Without a Price Professional Management: Pros and Cons Tax Traps in Mutual Fund Investing Star Ratings… Another Booby Trap? Strategies for When to Play It Hot and When to Play It Cool Mutual Funds for All Seasons: Long-Term Consistency, Low Beta, Solid Management, Strong Performance/Risk Relationships Exchange-Traded Funds—An Alternative to the Traditional Mutual Fund Recommended Reading Internet Information CHAPTER 10 Momentum Investing—Win by Going with the Flow Relative Strength Trading in Mutual Funds Monitoring, Selecting, and Maintaining Mutual Fund Portfolios with Superior Profit Potential and Risk Characteristics Performance of the Quarterly 10% Rebalancing Strategy over the Years Commentary Combining Mutual Fund Selection Strategies with Your Market Timing Models for the Best Risk/Reward How Relative Strength Investing May Be Affected by the Status of the Market Timing Models Commentary Creating and Maintaining “Killer ETF Portfolios” via Quarterly Relative Strength Rebalancing The Ten Style Boxes in Your Portfolio Performance of the Top-3 Investment Strategies Summing Up CHAPTER 11 The Final Word First Step—Set Aside Investment Capital, Starting as Early as Possible and with as Much Capital as You Can Afford Second Step—Add to Your Investment Capital Consistently EPILOGUE APPENDIX: Performance Histories: Five Timing Models Commentary The Weekly Stock Market Power Gauge Rules for Dealing with Combinations of Negative and Positive Numbers Related Websites Index A B C D E F G–H I J–K–L M N O–P Q–R S T U–V W–Z