Dorsey, Wright Client Sentiment Survey - 12/2/11

December 2, 2011

Here we have the next round of the Dorsey, Wright Sentiment Survey, the first third-party sentiment poll. Participate to learn more about our Dorsey, Wright Polo Shirt raffle! Just follow the instructions after taking the poll, and we’ll enter you in the contest. Thanks to all our participants from last round.

As you know, when individuals self-report, they are always taller and more beautiful than when outside observers report their perceptions! Instead of asking individual investors to self-report whether they are bullish or bearish, we’d like financial advisors to weigh in and report on the actual behavior of clients. It’s two simple questions and will take no more than 20 seconds of your time. We’ll construct indicators from the data and report the results regularly on our blog–but we need your help to get a large statistical sample!

Click here to take Dorsey, Wright’s Client Sentiment Survey.

Contribute to the greater good! It’s painless, we promise.

Leave a Comment » | Investor Behavior, Markets, Sentiment | Permalink
Posted by JP Lee

From the Archives: Commodities Can Burn Your Fingers

December 2, 2011

The Financial Times of London had an interesting article about commodities that pointed out that buy-and-hold is not a useful strategy to employ. Commodities, because of the frequent lack of correlation with other asset classes, can be an outstanding tool for risk diversification in a portfolio, but they cry out for use in a tactical fashion. For retail clients, being able to get commodity exposure through ETFs and ETNs has been extremely helpful, but it may be important to have some kind of systematic tactical process in place as well. Holding positions for long periods of time just to have exposure may not be the optimal strategy.

—-this article was originally published 10/13/2009. Buy-and-hold in the commodity futures world is just as dangerous as ever, what with contango waiting to jump up and bite you. A rotational strategy makes sense for exposure to this asset class.

Leave a Comment » | From the Archives, Markets, Tactical Asset Alloc, Thought Process | Permalink
Posted by Mike Moody

Dorsey, Wright Polo Shirt Winner

December 2, 2011

Thanks to all the advisors who participated for the last few months in the bi-weekly Dorsey, Wright Client Sentiment Surveys. Today, we’d like to announce this quarter’s winner of the polo shirt - Mr. Wayne Kimbell. Here’s what Mr. Kimbell had to say about Dorsey, Wright and how he implements the research and money management we offer.

We have been using Dorsey Wright research for more than twenty years. I personally chart more than 200 stocks per day by hand. Relative strength investing makes perfect sense to us.

Again, we appreciate everyone who participated in the surveys, especially those who keep coming back week after week. We are approaching our two-year anniversary since starting the surveys, so look for some more detailed posts in the coming months.

Thanks again!

Click here to view the results from the last survey.

Leave a Comment » | Uncategorized | Permalink
Posted by JP Lee

Sector and Capitalization Performance

December 2, 2011

The chart below shows performance of US sectors and capitalizations over the trailing 12, 6, and 1 month(s). Performance updated through 12/1/2011.

Leave a Comment » | Markets | Permalink
Posted by Andy Hyer

Quote of the Month

December 2, 2011

James O’Shaughnessy from What Works On Wall Street with a candidate for quote of month:

In the end, it is our consistent refusal to learn from history that condemns us to repeat it. While our situation and circumstances might change dramatically, we do not. It’s that very fact that makes long-term data especially useful. By examining how investment strategies perform in many different market environments, we prepare ourselves for what might occur in the future. Undoubtedly, the top-performing companies and industries will change in years to come, but the underlying persistence of what works and what doesn’t will continue. Thus, while I have no idea what the names of the winning and losing stocks of the future will be, I have a very good idea of what factors will define them.

Leave a Comment » | Thought Process | Permalink
Posted by Andy Hyer