Virtually all news is noise. All predictions are noise. Take a look at the headlines today from one news source I follow:
One Dead, Many Injured After Car Plows Into Protesters In Charlottesville, Driver In Custody
Trump Warns Xi: Trade War With China Begins Monday
South Korean Credit Risk Spikes Above China’s As Kim Chooses “Path Of No Return”
2 Dead In Police Helicopter Crash Near Charlottesville “Unite The Right” Rally
Martin Armstrong Warns, Australia Is “Crossing The Line Into A Totalitarian State”
“Dear President Trump: What Business Is Venezuela Of Ours?”
Chinese Bank Suffers ‘Rare’ Bank Run, Police Arrest “Rumor-Spreaders”
Is The Yellen Fed Planning To Sabotage Trump’s Presidency?
Crash Landing Of U.S. F-18 Fighter Jet Closes Bahrain’s International Airport
James Damore: “This Is Why I Was Fired By Google”
North Korea Issues “Emergency Standby Orders” To Civil Defense Units: Report
Does Kim Jong-Un’s Strategy Make Sense?
As you read these, you can link to the full story, but it is really a waste of your time. These types of headlines are always available. If you look when markets are rising and again when they fall, you will find these types of incendiary headlines.
Its just too scary to invest now, right? After all we are going to war. Well, that argument is nonsense given two facts.
First the Dow Gold Ratio is rising. That is always a time to be fully invested.
Second, the CFA Institute studied war returns in an article from 2013. During wars versus the entire market from 1926 through 2013, markets during wars had one third less risk and 14% more return. Every war period had double digit returns except for the 6% return during the Vietnam War.
One of the best and most profitable attributes of following the Dow Gold Ratio Strategy is the confidence it gives you to ignore the headlines and stay fully invested even when it looks pretty dark outside. And remember, the markets switch slowly at first then all of a sudden. The slowly part can take a long long time so you have plenty of time to study the DGR and decide if it’s rolling over.