Additional Info

In My Opinion

Those of you who know me know that I like to read charts and use them constantly to either get a clear view of the 'big picture', or to develop a short-term strategy based on current market dynamics. I thought I would take this opportunity to go on record as saying that, in all cases, I consider chart analysis to be a tool that is secondary to good fundamental research. 

Our focus as investors should be more about investing because the business fundamentals are sound and appropriate, or because the investment fits into our asset allocation strategy, and less about how it looks on the chart. A lot of very successful investors wouldn't know a chart if they tripped over it. They are successful because they applied appropriate portfolio management strategies to good fundamental research, and that's what we should also be doing for the most part.

Having said this, I want to emphasize that I think every investor should learn the basics of chart analysis and be able to use this tool to add value to the whole investment process. When my charts agree with our fundamental analysts, I can proceed with greater confidence. When my chart work disagrees, I can reflect on the fact that the chart represents the opinion of all market participants, and I can keep looking for a more suitable investment.

In conclusion, I hope the message you are getting is that in investing, as with everything in life, knowledge truly is power. Combining the strength of our analysts' knowledge with our own knowledge of chart analysis is a very powerful combination.

If you're too busy in your own life to find the time to learn these skills, then rest assured,  I would be delighted to put my experience and expertise to work for you.

/Walter Traversy