Bob Brinker has been recommending a "fully invested" position in the stock market since March 2003. (See Bob Brinker's Asset Allocation History.)
We can only speculate why Bob Brinker keeps giving "all in" buy levels. How useful are new buy levels every time the market drops?
Since March 2003, Brinker has recommended investors be FULLY INVESTED in the stock market. If they get any "new money" say from winning the lottery or a big inheritance, then they are to dollar cost average that money into the market except for when the market drops into one of his "BUY ZONES" where he recommends a lump sum (immediate) investment in equities. Here are some of my ideas why he has given four "all in buys" in the past 18 months without a single "take profits" or sell signal.
- His subscribers have a short memory and only remember the latest buy level so he will eventually look brilliant to some of them.
- He has a high turnover of subscribers when he has periods of poor market timing. Since he does not talk about past mistakes in detail in his newsletter, new subscribers have no idea his prior buy levels were a bust nor do they know he was advising a fully invested position through the latest bear market from its peak at 1565. To them, he might look like he called the bottom should one of the buy levels turn out to be a bear market bottom.
- His 8 page Marketimer newsletter has three pages of new text each month with the remaining 5 pages filled with performance tables. Perhaps Brinker can't find anything else to write about to fill the three pages of new text each month.
Feel free to use to comments section to add your ideas.