Frequently Asked Questions
Why is Dynamic-Investing better than buy-and-hold?
There can be very long periods where the market moves essentially sideways. Such a period was 1964 to 1980. In 1964 the DOW was at 850. In 1980 the DOW was still at 850. If you bought and held, you would have been invested for 16 years without any appreciation. Another problem with a buy-and- hold strategy is the potential for a serious market correction. Do you have the risk tolerance to watch the market value of your entire portfolio decline 30, 40 or 50% not knowing how much lower it may go before turning around? More importantly, do you have the time to wait it out? Will your funds be needed before the market comes back?
What percentage of my investable funds should I use in each system?
That depends on your individual circumstances and your risk tolerance. This is a matter that should be taken up with your investment adviser.
How often are reports emailed?
The report is emailed every Friday afternoon.
Will you be changing the funds over time?
No, we don't anticipate making any changes since it is an important function of the system that the funds be based on the S&P 500.
Doesn't the use of leveraging in these funds increase the risk?
Yes, if the funds were bought and held, however, Dynamic-Investing.com employs a mechanical system that reduces that risk and increases liquidity.
How do I manage my risk?
1. You manage your risk by subscribing to a newsletter that employs active investment management as opposed to a buy-and-hold strategy where you could be locked into the market for many years substantially below your cost.
2. Each weekly report has a "degree of risk" indicator that gives your approximate risk exposure before you invest.
Copyright ©1999-2022 TM Lester Co. All rights reserved.
Why is Dynamic-Investing better than buy-and-hold?
There can be very long periods where the market moves essentially sideways. Such a period was 1964 to 1980. In 1964 the DOW was at 850. In 1980 the DOW was still at 850. If you bought and held, you would have been invested for 16 years without any appreciation. Another problem with a buy-and- hold strategy is the potential for a serious market correction. Do you have the risk tolerance to watch the market value of your entire portfolio decline 30, 40 or 50% not knowing how much lower it may go before turning around? More importantly, do you have the time to wait it out? Will your funds be needed before the market comes back?
What percentage of my investable funds should I use in each system?
That depends on your individual circumstances and your risk tolerance. This is a matter that should be taken up with your investment adviser.
How often are reports emailed?
The report is emailed every Friday afternoon.
Will you be changing the funds over time?
No, we don't anticipate making any changes since it is an important function of the system that the funds be based on the S&P 500.
Doesn't the use of leveraging in these funds increase the risk?
Yes, if the funds were bought and held, however, Dynamic-Investing.com employs a mechanical system that reduces that risk and increases liquidity.
How do I manage my risk?
1. You manage your risk by subscribing to a newsletter that employs active investment management as opposed to a buy-and-hold strategy where you could be locked into the market for many years substantially below your cost.
2. Each weekly report has a "degree of risk" indicator that gives your approximate risk exposure before you invest.
Copyright ©1999-2022 TM Lester Co. All rights reserved.