It is amazing how many stock brokers, financial planners, wealth advisers, etc, do not actually listen to what the market is trying to tell them.
"Investing for the long term" becomes an easy way of saying "I don't know what is going on, but lets sit on our hands and everything will be OK in the end".
Or they pay too much attention to the TV headlines. Reporters on the TV sensationalize events all of the time. I know this because I have been providing expert commentary on the TV since 2010.
My name is Michael Gable and I am managing director of Fairmont Equities.
I have been appearing on Sky News Business, CNBC, Your Money, and I have written many articles for The Australian, the Australian Financial Review, and the SMH/The Age.
Most recently, the SMH/The Age asked me to explain Technical Analysis. This is a "traders" technique which helps you understand what the market is doing and where it is heading. Unfortunately, many "professional" investors believe that a useful tool for traders cannot possibly help them if they are an "investor". This is why your phone calls to your adviser is usually met with "she'll be alright in the end."
Having been bearish on the market for a couple of weeks (which you can see in our blog), I submitted my article to the SMH/The Age newspapers where I warned that our share market is likely to head lower. This was 2 days before the Dow Jones fell another 800 points. (Read it for yourself here)
It is important to note that we are not one of those firms which has been bearish for a long time, missing the rally from earlier this year, and finally saying that we were right all along.
In a number of TV interviews at the beginning of this year, I was highlighting to anyone that would listen that:
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So we have been correctly bullish on the market all year, as it rallied over 20% from trough to peak - with our clients doing extremely well. Now we have moved many of our positions to cash and become bearish and defensive for the time being.
This earlier bullishness was based on our strategy report just before Christmas, which happened to be the low of the market. We sent this to our clients to highlight it was time to get back into the market. You can read this report here.
We then followed this report up in March with another one, highlighting that there would be further upside. You can read this report here.
So what is going to happen now?
Unlike the big firms out there, we take a more dynamic approach for our clients. As you can see from our strategy reports, it is important to understand the macro environment first. We then use Technical Analysis to ensure that we are buying at the right time, and selling at the right time. Fundamental Analysis ensures that we picking the best quality companies. Combining these is key. It is why I started Fairmont Equities in 2013, because there was a gaping hole in the market. No-one else was blending these methods the way that we now do. It is why I am always asked for my opinion by media outlets.
This combination of techniques is what helps our clients maximise the opportunities that are out there.
At this point in time, I am waiting for the signal to get back into some good companies. This may well be in the next few weeks or so.
Because of this, I want to offer you an 8-week free trial to our client research. There is a good chance that during that time we will get our signal to get back in, which means that you can be informed.
Despite the noise out there, we believe that there are reasons for share market to head higher - but not just yet. The reasons are outlined in our latest strategy guide which you will receive for free as part of your 8-week trial.
So don't delay, grab your FREE TRIAL now and let me help you improve your returns.
Michael Gable
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"Michael’s key skill is in making what can sometimes seem like an investing black art comprehensible to a normal reader. That’s a surprisingly rare skill among experts such as Michael." - Andrew Main, Wealth Editor, The Australian
"Michael’s analysis is concise and easy to understand for any level of investor. I’ve gained more from his free content alone than many other paid services I’ve tried. Highly recommend for anyone seeking to gain an understanding of technical analysis and how to read a chart." - Leigh McLaughlan, Redcliffe QLD