In volatile markets you must be able to go to cash when markets become dangerous. That is exactly what the momentum selection model does well. It protects your capital on the downside and enables it to grow on the upside! If you insist on staying in the stock market at all times, even perfect foresight cannot protect you. The ability and willingness to periodically run away beats the macho strategy of holding on.

Assume that we are at a point corresponding to the beginning of 2007. How would our investing/trading techniques weather the same conditions represented by this most recent market adjustment? Would we be able to mitigate the losses (or even avoid them)? A traditional buy & hold, diversified investing strategy will be evaluated here.

The politicians of the western world are coming after your bank accounts. Cyprus-style "bail-ins...for systemically important banks" are actually proposed on pages 144 and 145 of "Economic Action Plan 2013" in the new Canadian government budget and it is being reported that the European Parliament will soon be voting on a law which would require that large banks be "bailed in" when they fail. ...I can't even begin to describe how serious all of this is. So exactly what in the world is going on here? Words: 1075

Cyprus is a trial balloon for the NWO [New World Order], taking a small country that can more easily be controlled, putting the financial screws to bank depositors and then watching how it all unfolds, creating a playbook for future bank raids... If anyone thinks this [was] a one-time, knee-jerk response, the Bank of Cyprus is offering a free toaster for new deposits as a reminder that your money will be toast.

My answer to the issue of staying in or getting out of markets is to stay in. This answer is independent of whether a correction is imminent or a few years down the road because we cannot possibly know that information....There will be a time to completely flee markets. It is just not now or at least I don’t believe so.

Supposedly "insured" depositors in Cyprus thought there was nothing to worry about until they woke up on Saturday with a haircut between 6.75% and 9.9% on their money in the bank. Today the American Banking Association reminded Americans that there is absolutely nothing to worry about when it comes to the sanctity of US deposits. [Really?] Words: 385; Table: 1

The U.S. is the most overbought country on a list of the 30 largest country ETFs, trading slightly more extended than Japan....6 countries are trading in oversold territory at the moment. [Is your country's stock market overbought or oversold? Take a look at the table below].

For those who haven’t yet grasped the uselessness of government policy, please read Charles Hugh Smith’s simple fourteen point explanation below. It details the steps government has taken, why they are failing, why the middle and poorer classes must get poorer and suggests that we are close to the end of the Ponzi scheme that has provided the myth that our economy has been strong for the last couple of decades.

Taking profits is rarely a bad idea, and staying fully invested at these levels seems foolish. That is why it might pay to raise some capital now, before the sell in May strategy comes up. Having a core position of equities along with some dry powder and keeping a look out for short-term trading opportunities is how I plan to play this market through 2013. [This article presents 5 specific reasons why it might be wise sell in May and go away - or even sooner - this year.] Words: 1280

The economy is heading for unprecedented volatility between rampant inflation and deflation courtesy of Ben Bernanke’s sponsorship of the $7 trillion increase in new Federal debt since 2008. Investors need to plan now while they still have time before the economic chaos begins.