For today's Money Manager POV, let's look at a recent article from the Wall Street Journal about how today, thinking about economics is bad for your investments.

In the top 10 ways to pick your stocks, the "Economic Conditions" is among the worst 3 relative to the others. Why?  "[Economic Conditions] managers have been tripped up by whiplash-inducing swings in stocks, currencies and commodities, often brought about by the latest twists and turns of impossible-to-time political developments."

Even today, world markets are moving in lock-step with one another. When the "Economic Conditions" managers start to outperform other managers, then we likely have a crisis brewing. One potential investment strategy uses a "Market Directional" approach. 

Here, without regard to price action or anything economic or otherwise, the research team weighs the relative performance of money managers and invests accordingly, including (perhaps) in investments that rise as the market declines.  A second potential strategy for bad economic times is Trend Following.

To read the complete Wall Street Journal article, email us or click the following link (subscription required). Click Here

To learn more about our views on the current economic conditions and current positions in your portfolio, call us! (1)