About us and mirrored stock market investing accounts, a new alternative to mutual funds, newsletters and private managers.
As we know, the internet has radically altered the ways that people invest.
- Trading fees less than 1/10 the traditional costs.
- High quality databases are available to any investor.
Online trading has often devastated the amateur investor, but online information has also left the professional investor with little to brag about.
Discretionary mutual funds and managed accounts operated by high-salaried professionals generally failed to adjust to the 2008 crash and even worse, failed to recover during the 2009 rebound. Therefore Krystof Huang, a former mathematics tutor and the founder of Planetary Investing, methodically subscribes to expensive databases seeking proven long-term track records. This has resulted in the following realizations.
- During 2001-2010, the worst decade for investment in recent history, several “value investing” sources were found with combined 10-year and 5-year average gains of both about +19% annually, and similarly a maximum average year-end loss of only about -19% for 2008.
- In comparison, the S&P lost -37% for 2008 and took years to recover. By late 2011, the S&P 5-year and 10-year averages were both close to zero. (-1% to +3% annually.)
- Over the past 5 years, some online investors have also been successful making semi-monthly investments in the new ETF index funds. The inverse ETF also enables profits during bear markets, with no short-selling. A combined ETF strategy can slightly reduce gains but greatly reduce losses, resulting in seriously increased long-term gains and preservation of capital.
- ETFs also might enable the short-term investor to benefit from low long-term tax rates by routinely repurchasing within 30 days. (However please consult with your tax professional.)
- “Mirrored accounts” and online per-trade fees as low as $1 enable the investor with as little as $5,000 accurately to follow each move of a dedicated semi-monthly trader.
Planetary Investing therefore will feature several mirrored accounts. Precise details will be posted here later.
The goals for Planetary Investing are twofold: to offer high quality investment information and to encourage investors to donate a fraction of gains towards environmental conservation.