What services do we provide?
The challenges of picking a stock, or a mutual fund for that matter, can be quite daunting.
When should I purchase? What should I purchase? When is the best time to buy? When is the best time to sell? What kind of fees or commissions am I looking at? Where do I go for guidance? These are valid questions to be certain, however – what should you do?
GaneWisdom/Market Edge was created for those who may not be working with a financial advisor, although many financial advisors rely on our analysis to help them manage their clients’ portfolios as well. Our primary objective nevertheless is to assist those with 401Ks, 403Bs, ROTH IRAs, Traditional IRAs, and Tax-deferred or tax-sheltered accounts through our subscription-based market analysis.
The objective of GaneWisdom/Market Edge is to take advantage of market upswings as well as to preserve as much capital or profit as possible by avoiding large losses in a falling stock market. Although no one can predict the exact high point or low point of the Equity markets, our goal is to allow our subscribers the ability to decide how and when to reposition their investments based on the market research we conduct. Our analysis is made available, with rare exceptions, by 10 pm every Sunday. Usually earlier in the weekend. We also issue midweek updates as needed.
Managing without melodrama
During our seminars we would ask “If you lost 50% of your investment, what would your account need to perform, percentage-wise, to regain the loss?” If you answered 100% you would be correct!
When we mention a market drop of 50% some folks think that’s impossible however just since the century turned, we’ve witnessed two; March 2000 – October 2002 and another October 2008 – March 2009. To repeat, our goal is to prevent big losses by taking small losses.
Many financial professionals will advise their clients to ‘hang in there’ during severe market downturns. The reason given is that the market will come back. That is true. They have come roaring back. The question is – how quickly? These market upswings can sometimes take years to happen and if years are what you have (or are willing to wait) then ‘buy and hold’ is the right course of action.
If however, you wish to maximize the return on your investment, then actively tracking your investments and repositioning them at various times would be the right course of action for you. Subscriber’s to Gane Wisdom/Market Edge can take our analysis into consideration to help them achieve this goal.
Interpretating the data
In order to reposition your investments, you must be able to do so without a fee or charge. Therefore, you’ll need to learn if your particular plan allows moves between subaccounts (the investment alternatives offered in your plan or account), how often they allow these moves and if there are charges or fees associated with these moves. Even if they do not allow daily moves, quarterly repositioning is normally allowed and your subscription with Gane Wisdom/Market Edge should be part of your decision process.
Keep in mind that nothing stays the same forever. There is a time to buy, and a time to sell. Our recommendations are based upon analyzing a broad range of economic indicators as well as various market indexes.
When financial advisors discuss the stock market most people think of the Dow Jones Industrial Average. ‘The Dow’ as it’s often referred to, is made up of 30 companies. This really is a quick snapshot of the market as a whole; however, it is far from a true indicator of it. To be more precise the S&P 500 is a much more accurate gauge of where the market is. As it implies, the S&P 500 consists of 500 of the largest corporations in the United States.
Some of the other indexes GaneWisdom/Market Edge follows are the Russell 2000 which is an index that tracks 2,000 small-cap companies in the United States and the Nasdaq index which includes 103 non-financial companies. We also follow foreign indexes as well such as the FTSE 100 (UK), CAC 40 (Fr.), Nikkei (Japan), Dax 30 (Ger.), and Hang Seng (H.K.) among many other sectors and indicators.
It is a generally held concept that the economy is the sole reason for movements in the stock market, however, upon further analysis, you would discover that the market fluctuates as a result of millions of investors who think they know which way the market is going to go. By carefully observing the beliefs and attitudes of the investing public, you ‘could’ surmise a trend in the equity markets. Market trends can sometimes move swiftly but usually, these trends can last months. Sometimes years. It could be said that the stock markets are controlled by very powerful human emotions.
Because of these emotions, if people believe that the market will rise, they will jump in. Usually near the highs due to not wanting to ‘miss out. Conversely, when the majority of investors see prices begin to fall, they have a belief that this downtrend will continue and despite ‘hoping’ that the pain will end will usually throw in the towel. This usually occurs near the market bottom. This is what is known as a ‘Panic Bottom’.
Our mission is to provide you with the information and analysis we compile which, by forwarding this on to you, can allow you to make informed decisions that may maximize your returns and minimize losses due to market trends and movements.