Point and Figure Charts: Japan’s Economic Recovery

by | Mar 21, 2011 | Podcasts, Stock Market Comments

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In this week’s podcast, we talk about John Dorfman’s article in which he states how the the “coming recovery” in Japan will reward some savvy investors.  We’re not too sure – Dorfman states that you can make a profit if you’re willing to wait two to five years.

The problem here is that if you look at the last “two to five years” – 2006 was five years ago. Those who bought the US market five years ago haven’t made any money — and they had a very scary ride through 2008.

Just because a market or a stock is cheap doesn’t mean that they’re going to go up – they can get cheaper.
Simple math doesn’t indicate that you’re going to make money on Wall St.

Basically, Dorfman is predicting a recovery for stocks in Japan.  Here at Mullooly Asset, we believe that predicting is a fool’s game.  By using point and figure charts, we eliminate the guesswork  by focusing on what is happening now.

What Japan really needs right now is food.  More and more of their food is becoming tainted by radiation.  Additionally, nuclear power has been knocked out and they’re going to need some other form of energy.  That helps to explain why commodities are a favored sector right now on the charts we use to manage your money.

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Thank you for listening. We welcome your comments and questions.