About 401kTimer.com

The goal of our market timing system is to achieve good returns while minimizing market risk. Our system is based on the following philosophy:

• Individual investors can never beat institutional investors on fundamental research.
• Markets are efficient in the long term, but inefficiencies persist in short to medium term.
• Market trends when formed, continue to persist for a while.
• Individual investors can be more nimble than institutional investors.
• Buy and Hold approach may not work for long periods of time. For example, Japanese Stock Index NIKKIE 225 in 2005 is at the same level as in 1985. Therefore, someone who bought Japanese stocks in 1985 and held on for 20 years does not have much to show for! What is worse, someone who bought NIKKEI 225 in 1990 would still have about 70% loss in 2005!

40kTimer.com monitors Exchange Traded Funds and Profunds.

Notes on our signals:

• Our signals go from '10% equity & 90% cash' to '100% equity'. "Equity" implies "equity funds". "Cash" implies a "Money Market Fund" that earns interest while preserving capital.
• Individual stocks may go bankrupt and their share prices may go to zero, but diversified stock funds in a capitalistic society will always go up in the long run. Therefore, we always maintain a minimum of 10% equity exposure through equity mutual funds.
• Our goal is not to beat the market (i.e., market indexes), but only to minimize downside risk. That being said, we might even beat the market if it is a predominantly downward or even sideways market because much of our capital will be in money market funds earning interest!
• Even though we monitor and provide signals on ETFs and mutual funds, they are not individualized recommenations. Please consult your financial advisor for specific investment advice.