“Cracks in the Foundation: Troubling Trends in Canadian Real Estate and the Shifting Sands of the US Market”
A TELTAAM UPDATE
To achieve success in investing, it is essential to thoroughly analyze historical patterns. Studying historical patterns' enables a model to accurately forecast future market trends. Consequently, it is vital to strategically position oneself based a models to take advantage of lucrative opportunities. One reliable tool that can be used to identify these critical turning points is The Economic LongWave Tactical Asset Allocation Model (TELTAAM). This model determines the most relevant turning points and how to leverage them for optimal outcomes.
Wealth preservation and investment are crucial aspects of success. One key to achieving this balance is to maximize returns while maintaining an acceptable level of risk. Diversifying assets across different investment categories is one way to accomplish this. The level of acceptable risk depends on various factors, such as financial status, psychological makeup, and life stage. Our investing approach, known as tactical asset allocation, involves adjusting the proportion of each asset category based on changes in the business, real estate and The LongWave cycle.
The tactical asset allocation model is designed to shift between fully invested or high cash positions, depending on the phase of these cycles. For example, during a downturn, the model may allocate more toward income and safety while still maintaining some exposure to the stock market. The model also determines the appropriate equity exposure, ranging from 0 to 50+ percent. Our primary objective is to preserve wealth by managing risk and avoiding overpaying for assets. If an investment is considered too expensive, it is wise to avoid it. Conversely, if the market is "cheap" and near the end of a downturn, there may be opportunities to capitalize on the next upturn.
In summary, TELWTAAM offers a disciplined approach to investing, aiming to buy low and sell high, a goal shared by many investors. By monitoring the Business, Real Estate cycle, and LongWave cycle, we can make informed decisions about market entry and exit points. This approach allows us to maximize returns while minimizing unnecessary risks.
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