Kacher, Morales of Virtue of Selfish Investing Score Big Yet Again in 2011
Playa del Rey, CA (PRWEB) September 07, 2011
Virtue of Selfish Investing’ s Market Direction Model is on track to score yet another near triple digit percentage gain this year.
“The long term results of the model going back to 1974 are +33.1% annually using the NASDAQ Composite, a major index,” said co-founder Dr. Chris Kacher. “We have used the model to keep ourselves on the right side of the markets since 1991, and it is largely responsible for our KPMG audited track record which contains a number of years where our returns were in triple digit territory, or above +100%.” Kacher continues, “Our triple digit percentage gains in years past were achieved picking and pyramiding into the right stocks, but with all the 3-times ETFs that now exist, the returns of the model using such an ETF would be roughly 3-times +33.1% or +99.3% annually.”
How has the model fared in challenging years such as 2000-2002 and 2008? Again, using a (major benchmark such as the NASDAQ Composite resulted in gains of +41.9% in 2000, +42% in 2001, and +8.6% in 2002 using NO leverage and 1-times ETF QQQ. Had 3-times ETFs existed then, one could triple these returns to get an approximation of how one would have done in those perniciously challenging years. And in 2008, the model was up +38.8% using NO leverage and 1-times ETF QQQ, a year when most funds were down more than -50%.
In recent years, the model was up +157.3% in 2009 and +86.5% in 2010 using 3-times ETF TNA which trades at 3-times the Russell 2000 index. As of September 6, 2011, the model is up +63.8% using TNA and +68.5% using 3-times ETF TYH. Results of the Market Direction Model are shown here: VirtueofSelfishInvesting.com/results
To give investors a better idea of how the market direction model works, here is a one-year example of buy, sell, and neutral signals issued by the model on the 3-times ETF TYH. From March 12, 2009 – May 14, 2010, the market direction model was up +183.9% going 100% long TYH on a buy signal, 100% short TYH on a sell signal, and 100% cash on a neutral signal. Click here then scroll down to the Timing Model profit/loss on TYH table to see the exact dates of these signals, VirtueofSelfishInvesting.com/results. Note, the model’s fail safes kicked in which minimized losses while the gains made during the trends more than made up for the small losses. Of course, due to the highly aggressive nature of this account, drawdowns as high as -18.5% were not unusual but that is the price to pay to get to +183.9%. Note, had investors been using a 1-times ETF, the gains would be roughly 1/3 of those shown, but the drawdowns would also be roughly 1/3 of -18.5%, or -6.1%
(See TYH chart here)
But timing areas where the big money is flowing is also a specialty of Virtue of Selfish Investing. In the realm of precious metals, the founders say ?wise ducks know how to handle their bills.? Holding their Silver positions (SLV) targeted for a sell at $ 50.00 an ounce for a position held for over six months, before market opening on April 25, Dr. Chris Kacher and Gil Morales saw the silver futures spike to a parabolic climax top, and they sold their silver ETF positions when the futures hit 49.82.
Quoting in metaphoric style, ?Like horseshoes and hand grenades it was close enough,? said Gil Morales who is Managing Director of Moka Investors, LLC, ?When it comes to our Market Direction Model, when the duck quacks, you feed the duck, no questions asked.?
?It was a classic gap-up fueled on news of the demand for the metal out of China,? said Chris Kacher, also Managing Director of Moka Investors, LLC, “Out of a constructive base of $ 18 an oz., it was a choppy sloppy market in 2011 but our patience paid off.?
Investors following Morales? appearance on Fox Business News purchasing SLV on 9/23/10 at $ 20.00 a share and selling at 45.83 after his appearance on 4/25/11 would have reaped an exponential return of 121%, just over double return on SLV?s performance for that period.
About Dr. Chris Kacher:
Dr. Kacher is currently a Managing Director of MoKa Investors. LLC. His investment career began in 1995 when he founded one of the first internet-based stock advisory services. In 1996 he joined William O?Neil + Co., Inc. as a research associate before quickly being promoted to Research Analyst and internal proprietary Portfolio Manager for the firm in 1997. From 1996 to 2002, he achieved a verified return in his personal account in excess of 18,000%, as verified by KPMG, the Big Four auditor. In 2005, he launched a private fund in Switzerland designed to help individuals and institutions build their wealth. Dr. Kacher received his B.S. in Chemistry and Ph.D. in Nuclear Physics from the University of California at Berkeley, where he studied under Nobel Laureate Professor Glenn Seaborg, and helped to discover element 110 on the Periodic Table of Elements and confirm element 106, which his group named Seaborgium. He also co-authored the book, Trade Like An O?Neil Disciple: How We Made 18,000% in the Stock Market (Sept. 2010, John Wiley & Sons).
About Gil Morales:
Morales is a former internal proprietary portfolio manager for William O?Neil + Company, Inc. (WON); and is currently a Managing Director of MoKa Investors. LLC, a California Registered Invesment Advisor firm. During his tenure at WON, Mr. Morales also functioned as Vice President and Manager of the Institutional Services Group, responsible for advising over 500 of the world?s largest and most successful institutional investors, including mutual funds, pension funds, hedge funds, trust companies, and banks. In 2004 Mr. Morales was appointed Chief Market Strategist for William O?Neil + Company, Inc. Between 1998 and 2005, Morales achieved an audited return of 10,904% in his personal account, and as verified by Rothstein Kass & Company, PLC, and his partner, Dr. Chris Kacher has achieved an audited return of 18,000%Mr. Morales also co-authored with William J. O?Neil a book on short-selling, How to Make Money Selling Stocks Short, (John Wiley & Sons, 2004) and co-authored the book, “Trade Like An O?Neil Disciple: How We Made 18,000% in the Stock Market” (Sept. 2010, John Wiley & Sons). He can be seen frequently on Fox News Channel and prominent radio shows.
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