Sun Tzu teaches us in the Art of War about the basics of Trend Investing

Sun Tzu was a Chinese military strategist in the 6th century BC. He wrote the famous book “Art of War”. The book has 13 chapters, each dedicated to a different aspect of warfare. What has this to do with outperforming the stock market, you may ask.

In Chapter 10, Sun Tzu gives us the answer: “He who knows when he can fight and when he cannot, will be victorious.” This quote has been the secret behind how also you can outperform the stock market.

Click here for the latest S&P 500 trend investing and long-term market timing signals.

The return of the S&P 500 over 2010 was good: 13%. However, the annualized returns of the S&P 500 for the last 3, 5 or even 10 years are very poor. Just buying and holding an S&P 500 index fund does not make financial sense. However, with trend investing and long-term market timing, investing in the S&P 500 does start making sense.

     Without Market Timing, Euro investments in the S&P 500 do not provide good returns.

Currently the Euro is 16% weaker versus the US Dollar compared to its top in July 2008. At that top, the Euro was 81% more valuable than at its bottom in February 2002.

This currency rollercoaster can have a major impact on your investing returns when you invest your savings overseas. Foreign currency fluctuations can amplify your returns or annihilate them.

A simple long-term market timing system would have saved me a lot of money when I invested a large part of my savings into different mutual funds during March 2000. Two months later in May, such a system would have given me clear indicators to sell my investments at that moment. I would have saved 40% of my savings.

Now I know better and since you are reading this, you can know now better as well. In this blog post I want to show you that it is not just me who says that long-term market timing can gain and save you a lot of money. Below you see a good 8-minute video (not from me) that explains very clearly the concept of long term marketing and how it works.