Playing the Percentages (Returns-on-Investment)
Aiming at the ROI – Returns on Investment
In the midst of all this charting and market watching, it’s good to step back and look at what really counts: The Returns from our Investments.
In the past, I’ve pointed out some popular markets and inspected just what those markets offered when one took a longer-term perspective just like those institutions whom I call ‘the money tigers’ do.
Using our Excalibur analysis approach, the first part of that Course confronts this ‘reality’ of investing head-on.
With the proper tool, we can make our market selections based on their potential rates-of-return over recent time periods.
Above is a chart of Crude Oil showing recent price return history.
Staying with a position based on it’s running rates of return seems to be a much sounder reason than buying or selling on news events or rumor.
When you examine the markets based on this approach, you’ll find a REASON to be in a market based upon your desired returns and not upon a wish or a ‘cross-your-fingers’ hopeful gamble.
On the above chart you’ll note that rates from 5-14% per month were being generated in this single market.
Even the lowest rate of 5% per month was far higher than banks are paying for a whole year!
When you combine an analysis of several markets of interest in this way, you can choose your desired ‘finish line’ goal for your investment plans.
The same can be accomplished on shorter-time frames of course, but, with more frequent shifts in trends requiring more attention to those markets so entered.
We’ll take a look at some more markets on this basis in the coming week.
Enjoy the weekend. - George
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