Not us. Since we have set our goal and understand the power of compounding, we realize, as Dick Fabian said, the investor is more important than the investment.

 

When its time to buy, NO asset allocation, NO bond funds, NO cash. We put 100% of our money into high momentum funds. Experience has shown that funds with the strongest momentum at the beginning of an up trend, generally (not always) perform the strongest for the entire up trend cycle.

 

Listed below is just a small sample of Funds and ETF's that track the listed market indices. There are many others available. Do a bit of homework and look at the options. Look at the Tools page for links to different sites. Remember what Al Thomas says, "if it doesn't go up, dont buy it".

 

How do we find momentum?

 

Dick Fabian has his method. He looks at the last three months of returns and does his weighted momentum calculations.

 

I have my method. I look at the last 12 weeks in 4 week  periods. Then I do a weighted calculation.

 

You can develope your method. You can use free tools available on the internet to start.

 

On the following tool, look at the 3 month return ranking for a place to start. Look at different sectors. There are many. You could start with:

 

Growth-Large Cap, Growth-Mid Cap, Growth-Small Cap

 

Value-Large Cap, Value-Mid Cap, Value-Small Cap

 

If you don't have a fund to use as your benchmark, try these.

 

VTSMX, is a fair comparison to the Wilshire 5000.

 

VFINX, is a fair comparison to the S&P500.

 

VDMIX, is a fair comparison to the MSCI EAFE (for international funds)

 

ETF's generally have a lower cost of ownership than MF's.

 

ETF's can trade throughout the trading day. You can get in or out (depending on share volume) whenever you want.

 

You can normally only get in or out of a MF at the end of the day. (Some MF's do have twice a day trading.)

 

MF's can allow you to purchase fractional shares. You can invest your full $1000 (for example) and be fully invested.

 

ETF's require you to buy whole shares. When you invest your $1000 (for example) you will only be invested to the next lowest whole share based on share price. Some ETF's require a minimum of 100 shares (called a round lot) to be purchased.

 

MF's don't normally have "trading" fee's. They are built into the higher cost of ownership. Some brokers do charge direct purchase and sell fees. Check with your broker.

 

ETF's do have trading fee's. The cost of purchasing shares. Use a discount broker for the lowest cost.

 

Most MF's are liquid. You can get out when you want.

 

Some ETF's are not liquid. Low trading volume could limit your ability to sell quickly.

 

Most MF's have minimum holding periods and charge you for selling early*.

 

 

Do some research into MF's and MF Families,  ETF's and brokerage options.

 

See the Tools page for links to ProFunds, Rydex, Direxion, iShares and many other investment choices. For more info on ETF's check out the various financial sites listed on the Tools page. They all have sections on ETF's. There are also some ETF sites listed on the Tools page.

 

There are now also MF's and ETF's that take advantage of a declining market. These are refered to as "short" or "inverse" funds. Look at the Tools page for more info.