The Pet Rocks of 21st Century Investing

As robo-advisers, alpha-funds, and balanced-funds become the pet rocks of the internet age of investing – cute but no value – the world is turning to the approach that will change the way people view their investment advisers…

Namely…

“Probability Investing” is what the internet age brought to investing in 1996 when Netscape IPO’d and changed the world.

I know… I know…

The name “Probability Investing”  needs a marketing team from 5th Avenue to properly brand its approach… or if the pick-of-the-month newsletter industry ever takes this up, which they wouldn’t because there’s not much of the “pick-of-the-month-ness” to it… they could come up with some fancy name.

But that being said…

The name for now will be “Probability Investing.”

With the bond bull market somewhere in its 9th or 10th inning, not over yet but it’s already started the “beginning of the end” phase… investors are going to start to notice that their age-based investment approach stopped working for them years ago.

So, Probability Investing, whatever it’s called in the future will be what a small, but profitable set of investors do with their money.

Simply defined, Probability Investing looks at the probability of an asset class going up higher in price. And the first rule of probability investing (the price has to be moving higher in absolute terms. The second rule of probability investing = the price has to be moving higher in relative terms to the “free stock-market” rate of return.

In Your Corner,

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