In a recent article in Daily Reckoning, Greg Guenthner discussed the first 4 of a set of investment rules followed by Ned Davis (of Ned Davis Research Group). During 35 years of a successful investment career, Davis has used these rules to beat the market.
If you want to succeed in the market – whether it is in a bull phase, or a bear phase or a sideways consolidation phase – you need to understand and master these set of rules.
Here are the first 4 rules:
1. Don’t fight the tape (i.e. the trend)
2. Don’t fight the Fed (i.e. RBI in our case)
3. Beware of the crowd at extremes
4. Rely on objective indicators
Read the comments by Guenthner on the above rules here.