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Thursday, January 16, 2014

The bottom line to Jerry Minton, President of Alpha Investment Management, writing in his latest newsletter, is:
Prudent investors should keep in mind that the stock market has always been cyclical and will always move to extremes in either direction. Long periods of uninterrupted gains suck in the naïve, ignorant, envious, and greedy multitudes that create excesses of risk sufficient to set off the avalanche that eventually wipes the slate clean again and returns stocks to their rightful owners. Today's optimism is approaching a near-certainty that the Fed will continue to support the market for years to come, making serious risk a thing of the past. This is not good news for buy-and-hold strategies which have to endure whatever the market dishes out on the inevitable downside of the cycle.
To see how Alpha's passive, formula-driven seasonal strategies handled the worst declines of the past 15 years, go to our website at and click on Programs and Performance.