I have posted before about my trend tracking investment philosophy. This week I sold off small cap and mid cap positions due to downside technical breaches. Large caps are on the bubble. Monday will tell. I don’t know where the market goes from here, but I urge you to stick with your discipline. Avoid large losses and you will make money over time. Get your emotions out of it, and trade when your rules say to trade. I personally like a 7% down rule for domestic stocks. 10% for emerging markets, commodities, and other volatile investments. Pay close attention next week!
An easy way for the SEC to make progress on the fiduciary duty issue is to impose a fiduciary duty on all advisors and salespeople dealing with seniors. Research shows that even healthy seniors experience declines in their ability to make financial decisions as they age. It is a steadily progressive decline that begins in a person’s 20’s. Sometime between age 60 and 100 it becomes dibilitating to the point where a person should not make financial decisions. But the senior won’t know it or won’t admit it. What if every transaction with a person over 60 was subject to a fiduciary standard? Everyone from the parish priest to the annuity salesperson to the undertaker would be bound by this standard and held liable if a transaction was not in the senior’s best interest. The financial ripoff of seniors is a huge problem with an easy fix.