| NOV 1993
Using Technical Performance Measures by Sidney I. Gravitz
Using Technical Performance Measures by Sidney I. Gravitz Today's spreadsheets offer investors the ability to develop customized economic and investment monitors. Here's one take on the use of a spreadsheet for managing money. I f you invest, you may find that success comes about from committing funds in accord with favorable odds. I use widely available technical performance measurements (TPMS) to track the various phases of the economic and market cycles, along with moving averages to aid in specific buy and sell decisions. My approach is suitable for investment amateurs with a personal computer spreadsheet, an analytical bent, a moderate tolerance for risk but only limited time to devote to investment management. Stock and bond investing is attractive because it is a positive-sum game. Gambling is typically a negative-sum game — that is, keep at it long enough and the house will win. Commodity speculation, in contrast, is (almost) a zero-sum game — for every loser there is a winner plus transaction costs. On the other hand, the US economy's historical expansion has resulted in a median 10-year annual return since 1926 of 9.7 % in the Standard & Poor's 500 index. I believe that some intelligent tracking, screening and assessment can improve on that amount, with relatively modest risk. In particular, intermediate-term investing — one to three years — using basic economic and market cycle timing considerations can exceed average market returns.
by Sidney I. Gravitz
Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99
To continue reading, sign-up for trial access to Traders.com and the S&C Archive — 37,000 pages of trading ideas!
After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.
Not a subscriber to Technical Analysis of
STOCKS & COMMODITIES magazine?
Click
here to subscribe, or request
a trial subscription.
Log-in now to view articles from the S&C Archive.
Your Subscriber ID is located at the top of your magazine label, highlighted here in red.
Your last name can be found on the second line, highlighted here in blue.
*If you have a company name on the label, that can also be used. It will appear below your name on the label.
If you do not have a Subscriber ID on your label, you can find it on your statement or renewal form.
For help locating your Subscriber ID number, please call us at 1-800-832-4642 or send an email to Survey@Traders.com. If sending an email, please include your name and mailing address.