Worry Free Investing in 2017

Happy New Year from VectorVest UK

The rules of the Worry-Free Investing system (WFI) are simple and robust. I have discussed them in detail in the post of December 19th during a Core Finance interview.

In essence, the system uses the Relative Safety (RS) metric on VectorVest to find those shares on the LSE that have the highest consistency and predictability of financial performance. The system uses the Confirmed Call market timing system (RT) to enter the market. This is the most conservative timing method on the VectorVest program. When a Confirmed Up signal is printed, then the investor simply buys the top 10 stocks that are on a BUY recommendation. The investor should endeavor not to hold more than two stocks from the same sector of the market.

Never Fear Market Volatility Again

The WFI system uses the VectorVest calculated stop-loss to exit positions. If the overall market is rising, then the probabilities of being stopped out of a high RS stock are low but it can happen. In this case, the investor would simply resort and replace this share with another than they are not holding. If the general market is rising, then the investor should be fully invested.

If the general market turns down and prints a Confirmed Down signal, then the probabilities of getting stopped are much higher. In this case, the investor does NOT replace and builds a cash position.

When the next Confirmed Up appears, then resort and replace.

Make More Money by Making the Trend Your Friend

I have been running the WFI system in South Africa since the 19th July 2016 and in the UK since 19th July 2017. In SA, I report the selection at each User Group meeting and the selection hasn’t changed since purchase 18 months ago. The portfolio is up over 20% while the overall market hasn’t moved and has been stuck in the most miserable of trading ranges. Most fund managers are totally underwater in their selections.

In the UK I started on my birthday, which is the 19th July, and also the date of a Confirmed Up on the VectorVest UK Composite. On the 19th July 2017, I selected the Unisearch Tab on the VectorVest 7 UK and opened the “retirement” folder. From this, I chose the Unisearch named “Long Term Winners…RS descending”. I added an extra line to the preprogrammed Unisearch that the stocks recommendation is a Buy.

Unisearch Long-Term Winners RS Desc
Unisearch of Long-term Winners – RS Desc
Click or tap image to enlarge.

If you run the above Unisearch on the 19th July 2017 and then complete a “Quicktest” to the 28th December 2017, then you should see that the top 10 selected are up 20.01% while the overall market is up 1.99%. Please try the exercise and you will see why at VectorVest we refer to the WFI as the “Ultimate Retirement Solution”.

Happy New Year Everyone.

David Paul
December 29th 2017

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