|
|
|
|
How to use the Sector Fund Timer |
|
|
|
|
|
Sector timing has long been one of the greatest secrets to investment success. In all markets. In all times. All investments have their cycles, periods when prices rise and periods when they fall. The idea is to buy before prices rise and sell before prices fall.
Opportunities abound. But only if you buy and if you sell at the right time. This is where we come in . . . the Sector Fund Timer specializes in sector timing! It will tell you exactly when to buy and when to sell.
You can use SFT to time Fidelity Select Sector Funds or to invest in the best no-load sector and international funds available through mutual fund supermarkets like Charles Schwab (www.schwab.com),
Fidelity (www.fidelity.com),
Scottrade (www.scottrade.com)
and TD Waterhouse (www.tdwaterhouse.com).
The Rydex (www.rydexfunds.com)
and Profunds (www.profunds.com)
portfolios can be traded directly through the respective mutual fund companies.
There is also a portfolio dedicated to Exchange Traded Funds (ETF's) investing in industry sectors and international markets. The Sector Fund Timer will tell you, in unequivocal terms, which fund to target your investment dollars in and when to stay in the safety of money-market cash.
The Sector Fund Timer is clear, concise and easy to use. Yet it generates enormous profits when followed correctly and with proper discipline. Average annualized return for the last 17 years exceeded 40% with NO margin or short-selling.
Did you know that at this rate you'll almost double your money every 2 years. And if you double your money every 2 years, $10,000 will grow to more than $10 Million in 20 years.
The Sector Fund Timer will be e-mailed to you every Monday morning before 7:00 a.m. eastern time. It will also be available as a PDF file on our website at www.123wealthquest.com.
You must have Adobe Acrobat Reader installed on your computer to read
PDF files. This can be downloaded free from www.adobe.com.
The different portfolios featured in SFT are as follows:
- Fidelity Select Funds HTF (Health, Tech, Finance) Portfolio invests in just one Select fund at a time, chosen from Electronics, Health Care and Home Finance, representing the three major growth sectors of the U.S. and world economy.
- Fidelity Select Funds TRIO Portfolio invests in 3 Select funds at a time to increase diversification even more.
- Rydex Funds Portfolio invests in three Rydex mutual funds as determined by relative price strength.
- Profunds Portfolio invests in three Profunds mutual funds as determined by relative price strength.
- International, Bond & Sector No-Load Portfolio invests in three funds at a time. These no-load funds may be traded through a brokerage account at one of the mutual fund supermarkets like Scottrade, Fidelity, Schwab or TD Waterhouse.
- International & Sector Exchange Traded Funds Portfolio invests in 3 ETF's at a time. These funds trade just like stocks on the American Stock Exchange. You will require a brokerage account to buy and sell these funds. For more information please visit www.amex.com, www.iShares.com, www.streetTracks.com and www.holdrs.com.
With the Sector Fund Timer, you can get started at any time. You don't have to worry about the market being too high or too low. This highly profitable sector timing service will notify you of any changes instantly.
To start investing, simply align your portfolio with that of the model portfolio or wait for a signal change to start afresh. Please read the Frequently Asked Questions for more details.
Please remember ... patience and discipline are the two most important cornerstones of successful investing. Don't expect miracles or think you'll get rich overnight. Also, don't let the day to day market volatility and ups and downs bother you.
That is all part of investing in the stock market. Focus on the longer-term. Look at the bigger picture. Think where you want to be 3, 5 or 10 years from now.
Jumping around from one investment program to the next can be detrimental to your wealth building efforts. Once you have found a good system, like the Sector Fund Timer, try it for at least for one full year before passing judgment on it. We at Wealthquest International sincerely hope to make your investing profitable and enjoyable.
FREQUENTLY
ASKED QUESTIONS
|
Q. When is the newsletter published?
A. The Sector Fund Timer is published every Monday and distributed to subscribers via email and the password protected area on our website (www.123wealthquest.com)
before 7:00 a.m. eastern time.
Q. I just signed up; am I too late for the signal? What do I do?
A. You have two options. Either wait for a New Buy signal for a fund to initiate your trading or jump in right away in the current trade. There is a third option which is nice compromise between the two. Use half of your investment capital to invest in the present ongoing trade (please be aware of Fidelity's short-term 0.75% redemption charge for funds sold within 30 days). Invest fully only when a new fund is purchased in the model portfolio(s) of your choice.
Q. Do I have to use the Fidelity Select Funds for this service to work?
A. No. Although, this service was originally designed to trade Fidelity Select funds, you may also use the Rydex or Profunds Sector Funds Portfolios, the International, Bond & Sector Fund Portfolio or the Exchange Traded Funds portfolio published in every issue of the Sector Fund Timer.
Q. Are the Fidelity Select funds load or no-load?
A. All Fidelity Select funds are now no-load.
Q. What broker do you suggest?
A. We suggest you use Fidelity Investments or Fidelity Brokerage (www.fidelity.com)
for trading the Select funds. The latter may also be used for other fund
portfolios in the newsletter. You may use either Scottrade (www.scottrade.com),
Charles Schwab (www.schwab.com)
or TD Waterhouse (www.tdwaterhouse.com)
for trading any of the NON-Fidelity fund portfolios.
Q. Can I trade these in my mutual fund account at Fidelity?
A. Yes, absolutely.
Q. How do you select funds to invest in OR Why are you buying or selling the XYZ fund?
A. Every week, we screen all the Fidelity Select funds looking for the one fund that has potential for spectacular price increases. The final fund selection is done using a rigorous proprietary system based on cutting-edge computerized technical analysis. This system ranks the funds according to their short-term momentum and relative strength. We list these in every issue of the Sector Fund Timer.
Q. Are these funds risky?
A. These sector funds are quite volatile and most people would characterize them as being risky. That is why you must adhere to our model portfolio with complete discipline. Please do sell a fund when we ask you to sell it. The Sector Fund Timer investment system has built-in stops which have kept the largest loss to just 15.67% in the past 14 years. You don't have to compute these stops. They are automatically tracked for you by the system on a weekly basis.
Q. A certain fund is down 8%. Are you still recommending it?
A. Since this is a weekly trading system, we request you to please wait patiently for your weekly update to see whether we are still recommending it.
Q. As a new subscriber, should I buy the fund in the model portfolio, or should I wait till there is a new buy?
A. Either strategy is fine. The aggressive option is to go ahead and buy the fund in the model portfolio at its current price. This way you'll be fully invested instantly. Even though some of these funds may be up 10-20% since we bought them, it doesn't mean that they cannot go up another 20% or more from these levels. The more conservative option is to buy a fund when it is freshly added to the portfolio. This way, it may take you a few weeks to get invested.
Q. Why do you sometimes sell the Fidelity Select funds within 30 days of purchase, thereby incurring a 0.75% short-term redemption load?
A. We strive not to sell a fund within 30 days of purchase. However, sometimes market conditions dictate that we sell a fund and pay a small redemption load rather than lose a much larger amount in a severe market decline. This usually happens when our initial or trailing stop loss level is penetrated. Remember, its better to pay the 0.75% load and get out rather than lose 7.5% in the ensuing decline. Don't let the tail wag the dog.
Q. Why don't you have more explanations and analysis in the newsletter?
A. We believe that over-analyzing anything leads to paralysis and the investor fails to act on the opportunity at hand. Since all our recommendations are based on tested and proven computer models, more explanations are not relevant because they do not add to the bottom line. By giving you a 16-page newsletter full of words and graphs, we'll be wasting your precious time without making any difference in the investment performance.
Q. Why did you sell the XYZ fund at a loss?
A. Nobody likes losses, but all fund positions cannot be profitable. And there is nothing wrong with taking a small loss. All successful investors and traders take losses from time to time. If we perceive that a certain fund is not behaving the way we expect it to, we'll not hesitate in selling and moving on to other more attractive funds.
Q. How do I use the list showing the ranking of Select funds?
A. If you decide not to follow our model portfolios, you may use the list of Best Funds Momentum Ranking to pick & choose and build your own personal portfolio. One strategy is to buy a fund that appears at the top of the list. Hold a fund as long as it is in the top 50% of the list. When a fund drops out of the top half, sell it and then buy again from the top of the list. This is just one way of using the list. You may prefer to use it differently and tailor it to suit your personal taste.
Q. I expect the market to have a correction. Should I sell my funds?
A. Consult your crystal ball first. Since nobody knows for sure when a correction is imminent, don't sell your funds based on what you hear on TV or read in the newspaper. Over the long-term you will be amply rewarded by following the SFT model portfolio, using a strict method of discipline and patience.
Q. Can I call you with questions?
A. We are not in a position to give individualized investment advice. The purpose of the service is tell you when to buy and when to sell. The service subscription price does not include telephone consultation. You should consult a financial planner for your specific needs. However, if you have a specific question about the service itself, please email it to us at support@123wealthquest.com and
we will answer it promptly.
Disclaimer: Neither the Sector Fund Timer nor Wealthquest International Inc., or any of its owner, officer, employees or associates will be liable for damages, including losses, loss of profit or any consequential damages resulting from the use of or the inability to use this service. The Sector Fund Timer is intended for experienced, sophisticated investors who are thoroughly familiar with all the risks, cost, mechanics, tax, and legal consequences of mutual funds and investing. Use or misuse of any information included in the Sector Fund Timer specifically exempts anyone affiliated with the Sector Fund Timer from any liability whatsoever. All subscribers or users of the Sector Fund Timer agree to take full responsibility for their investment decisions and any losses. Investments are at your own risk. Information may contain factual, mathematical, or typographic errors and therefore should be verified. Profits are not guaranteed and losses are possible. If you are unwilling or unable to comply with or agree to any of the conditions of this disclaimer, you may cancel your subscription at any time.
How to make sure you
get our e-mail.
|
|
|
|
|
