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Martin Pring The Investor s Guide to Active Asset Allocation (Sector Rotation)

Post on: 14 Июнь, 2015 No Comment

Martin Pring The Investors Guide to Active Asset Allocation (Sector Rotation)

Jul 2, 2007: 8:03 AM CST

Martin Prings recent (2006) book The Investors Guide to Active Asset Allocation details one of the most complete explanations I have seen so far (in easy to understand format) regarding sector rotation, the business cycle, stock market cycle, money/portfolio management, intermarket relationships and many other concepts. Not only is the text a virtual reference manual for these concepts, Pring provides specific easy to follow strategies for proper asset allocation and targeted diversification to maximize returns using Exchange Traded Funds and other vehicles.

In the book, Pring details his proprietary Six Stages of the Business Cycle and how to identify them (hint: It deals with bonds, commodities, and the S&P 500). He further describes his new research including detailed charts of how certain sectors/industries have performed during each of the six specific stages he outlines and provides strategies to take advantage of specific strength and weakness of under- or over-performing sectors at key times.

Its not enough to recognize what has happened in the past, but to recognize conditions/relationships occuring now, as well as position long-term portfolios to take advantage of these developments. Swing traders can also benefit by active trading of larger key themes with individual stocks or broader ETFs.

The following bulleted points are from the official description at Amazon.com :

The Investors Guide to Active Asset Allocation provides you with proven investing expertise on:

Basic Principles of Money Management

How the Business Cycle Drives the Prices of Bonds, Stocks, and Commodities

The Pring Six Business Cycle Stages

Technical Tools that Help to Identify Trend Reversals

Putting Things into a Long-Term Perspective

Recognizing Stages Using Easy-to-Follow Indicators as well as Models

How the Ten Market Sectors Fit into the Rotation Process

How Individual Sectors and Groups Performed in Each of the Six Stages

Asset Allocation for Specific Stages

I highly recommend any trader/investor to read Prings work to learn sector rotation or economic/business cycles at a deeper level that provides actionable strategies for profit. Martin Pring is recognized as one of the Masters of Technical Analysis, and is often referenced as The Technicians Technician. I have heard Pring speak at two conferences and enjoyed the material and his depth of knowledge regarding the topics discussed.

Pring wrote an earlier guide in 1996 entitled The All-Season Investor: Successful Strategies for Every Stage in the Business Cycle which details these concepts. I have not read this work yet, but wanted to highlight it as well as one of Prings reference guides.