Recent events remind me of the fundamentals of why we created this app
This article was originally posted in November of 2020, but fundamentally still holds true.
In recent days we’ve seen HUGE current events and the market’s reactions to color our brokerage statements and shade polite conversations across the nation. Yes, I’m talking about the announcement that a vaccine candidate from Pfizer has proven to be 90%+ effective, suggesting, that just maybe, we all might be seeing the end of the pandemic sooner than later.
The futures markets took a record spike as many investors saw that announcement as a welcome sign of a return to normal. However, it wasn’t long before it became obvious that some investors saw it as an opportunity to shed some or all of their quality holdings and invest instead in those so-called ‘value’ stocks such as airlines, cruise ships and hospitality companies which have been shown to be poor performers in pandemics.
While a lot of money went into those other sectors, dragging them and the Dow higher, the stocks in our Buy Zone fell. Precipitously. Sigh.
But, that’s not the end of the story. I am encouraged that, only a day later, the Buy Zone stocks took their revenge and climbed to a position that was higher before they fell the day before.
These are certainly strange times we live in, but the Brockmann Method and its alignment with price momentum has shown that, over time, and in these times, they are the long term investor’s best and probably only shot at excellent returns.
And, although every position I take, based on the Buy Zone doesn’t always pay its way before I sell it as it enters the Avoid Zone, I know that there’s a higher, better prospect just on the other side of the sell order.