tactical investing

The current price action in the S&P 500 is tracking the movement leading up to the collapse in 1987 

(via Bloomberg)

When a client and his wife recently asked me about setting up their own SMSF, one of the first things she said was that they could have the SMSF buy a block of land they already owned that they wanted to build on for rental income but didn’t have the funds for the construction. That way the SMSF owns the land and they could use the money from the sale to build their house on it. In short, that would be as clear a breach of the Superannuation Industry (Supervision) Act 1993 (the SIS Act) as I could come up with!

DIY Super Investment Strategy? Can Do!

This Figure is a weekly chart of the SP500 with the InsiderScore “entire market” value in the lower panel. From the InsiderScore weekly report: "A Sell Bias remains intact across the market, however, a seasonal decline in insider trading volume has begun and will continue for the next two-to-four weeks as companies close trading windows, prohibiting insiders from trading until after Q3'12 earnings are announced."

Having been regularly asked about tactical investing and where the money could make a bigger return for the money (and the risks are larger also), we thought to show a sample portfolio that was created for a high-growth client with a tilt to EMs and FMs:

Marc Faber discusses what opportunities are likely to emerge for institutional investors if sovereign debt continues. Furthermore, he assesses the possible impact of social and political unrest in North Africa and the Middle East, and how hedge funds can invest in emerging markets.

When the sharemarket is particularly volatile, more investors are likely to try to time the market – that is attempting to pick the best time to buy and sell shares.

1:10:10 - "we are single-digit years away from the most profound market clearing moment"