Economy Watchers Investment Law

The swing trade of equity investment, as well as how to use charts and technical indicators, there is also a way to buy and sell according to the specific economic indicators. In one of them, there is a method of investing that use the changes in the index of "Economy Watchers Survey (street corner economy)," the Cabinet Office announced.

This "Economy Watchers Investment Law" is what Seiji Noda of economists was published in books. Economy Watchers survey to be announced at around 14 of the monthly sixth business day, the reliability of as leading indicator of the economy is the highest, seems to index that is suitable to read the bottom and ceiling of the stock price. If improvement index of "status quo decision DI" to be presented at the Economy Watchers survey is more than 1.5 points in the sign of "buy", to determine if worsening reverse to more than 1.5 points a sign of "sell".

Accordingly, if buying and selling Nikkei average ETF, and has achieved a yield of at the data of 10 years from 2000, when the survey began, a total of 126% (annual average 8.5%). This 10 years, and since has become a minus if they continue to have the average Nikkei, you may ask whether this method is superior to how.

Of and clarity trade rules, it has published all verification data, and in that is accompanied by the results of 25-day moving average investment method (aka Saito type swing trade) "Economy Watchers Investment Law" of Toko is it matchless people you'll say.

Economy Watchers survey, such as department store clerks and taxi drivers and Hello Work staff, those that actually do the survey to people who work in the city, each person is not even anything in the economy of experts. Collection of opinion of the general social people is, than such as economists expected, it is that it's accurate to much in economic decision (≒ stock market of the future). It is an investment method like going in the ground "surprisingly correct (James Surowiecki Author) is everyone's opinion" famous.
This method on the data, the person who went in the Nikkei average ETF than TOPIXETF, seems to record a higher yield. Also in the Tokyo Stock Exchange REIT Index, have been obtained almost the same effect.

The data since 2003 that it is possible to have the Tokyo Stock Exchange REIT Index, is calculated to yield the annual average 8.7% is obtained. And this is the numerical value of only REIT Index, because the REIT there are dividends, actual performance is more calculated to exceed this. If buying and selling to law as of Economy Watchers investment, it became so that it has a position in exactly half of the 42 weeks of the seven-year (84 weeks), if the dividends of REIT is the average of 5% in the simple calculation 2.5% I'll be adding, annualized yield is calculated that jumps to 11 percent.

Besides, if Karamere a "short sale" not only buy, seems further performance increases. Also this method, it is because it is what you want to predict the market, it is likely to be applied to be or measure the timing of the purchase and sale also in individual stocks.