Good thread.
TheDude or anybody else invest in stocks using the CANSLIM approach popularized by William O'Neill?
At first glance the strategy sounds feasible...only invest when the market is in an uptrend, only buy stocks that are being heavily bought by institutional investors, in addition to the CANSLIM criteria which pretty much finds company's that are leaders and have accelerating earnings growth.
What I find dubious however is their 'market timing.' What constitutes an uptrend or a downtrend? Moving into and out of the market according to their analysis will probably eat up some profits because of fees.
They have an ETF strategy that stays 100% invested during an uptrend, then a 50% position when the uptrend is under pressure, and 0% when the market is in a correction. I haven't done a complete analysis using historical data, but in my mind I'm not sure this is better than a simple buy and hold through the swings. Of course it depends on your time horizon but even after the market bottoming out in 2009, it's recovered nicely in just a few years.
Thoughts?
TheDude or anybody else invest in stocks using the CANSLIM approach popularized by William O'Neill?
At first glance the strategy sounds feasible...only invest when the market is in an uptrend, only buy stocks that are being heavily bought by institutional investors, in addition to the CANSLIM criteria which pretty much finds company's that are leaders and have accelerating earnings growth.
What I find dubious however is their 'market timing.' What constitutes an uptrend or a downtrend? Moving into and out of the market according to their analysis will probably eat up some profits because of fees.
They have an ETF strategy that stays 100% invested during an uptrend, then a 50% position when the uptrend is under pressure, and 0% when the market is in a correction. I haven't done a complete analysis using historical data, but in my mind I'm not sure this is better than a simple buy and hold through the swings. Of course it depends on your time horizon but even after the market bottoming out in 2009, it's recovered nicely in just a few years.
Thoughts?