The first LT Indicant sell signal in nearly twenty years occurred in February
1969 with the Dow at 873. The cost of the Vietnam War had finally taken its
toll. The higher taxes and the beginning of the "great society" was
not good for the stock market. It is never good to remove money from value
producers and place it in the hands of non-value-adding institutions, such as
government. But that is what stupid political leadership does from time to time
and the LT Indicant sniffs that out and recommends sell.
So from August 1949 until February 1969 the Dow Jones Industrial Average grew
from 179 to 873 or by 390%. The LT Indicant had you in the stock market during
the longest bull market in this century. There were several corrections during
this time. The short term indicant would have helped you avoid these
corrections. However, the long-term oriented investor would have never flinched
at these corrections. He or she would have known these stock market dips were
mere corrections, since the LT Indicant always remained below the LT Trip Line.
The Indicant will keep you posted from a long term perspective and a short
term perspective each and every week.
