The 20/10/5 Trend
I recently went over a book by Robert Kiyosaki – I think it was “Rich Dad’s Guide to Investment – what the Rich Invest in and the Middle Class does not”. The book was released before the internet stock bubble burst. In the book it mentions the 20-10-5 trend which is really interesting. It states that for 20 years the equity market is the place to invest your money – Equity or stocks, mutual funds, hedgefunds, etc. Then comes a 10 year trend to put your money into commodities, gold, silver, real estate – basically into hard assets. And the 5 is that for every 5 years a major catastropy occurs – September 11. Looking back at this chapter I can see that we are just about done with the real estate and gold trend and will head back into stock market trend soon if this theory is true. So far it looks pretty accurate. My twin and I are already playing with automated system trading platforms and putting more cash into stocks. We also invested some money into really neat programs to backtest the forumlas we use to time stock buys.
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