Further financial fiddling

I read an interesting article about Keynes over the weekend - famous economist and relatively successful investor (as Fellow of Kings College, Cambridge). He believed that trying to time the market was impossible - and as a true value investor, said that you should focus on identifying out of favour companies at whatever point you find yourself in the economic cycle.

I am not sure - as you will read in earlier posts, I think that the market is going to tank this year, so why pile money in if stocks will be double figures percentages lower in six months time? Thinking about it brought me to common ground in between - i am going to keep buying stocks, but I will speed up and slow down depending on what the overall FTSE performance tells me.

So, when the market's in a down phase (let's say net down by more than 3% in the ten days prior to the point I invest) I will invest 10% more than the nominal amount detailed in the previous post. And when I say market, I mean the FTSE All Share Index.

Conversely - if it's in an up phase (i.e. up by more than 3% in the ten day prior to the point I invest), i'll invest 15% less than the nominal amount.

And if it's within the +3% to -3% range - i'll just put the nominal amount into the market

Let's see how this pans out - as ever, i'll keep you updated!