Seeking strategies to capitalize on the current market conditions? In this episode, featuring Paul Kornfeld, President of SIACharts, we discuss the utility of a framework to cope with fluctuating markets. We delve into the significance of technical analysis amidst zero interest rates and undervalued fundamentals over the past decade, along with the challenges of risk management during market shifts, such as the current climate of inflation and rising rates.
Kornfeld provides an overview of current market conditions, underscoring cautious optimism and a bullish stance on international markets. He also introduces new SIACharts’ developments, emphasizing the importance of chart analysis, particularly point and figure charting.
He explains SIACharts system, which performs billions of calculations daily, employs point and figure comparison charting to examine the supply and demand dynamics of various asset classes. The system’s rankings, based on longer-term trends, are not designed for day trading but to provide forward insights into stocks, ETFs, mutual funds, asset classes, sectors, and model portfolios.
The key takeaway is the essential role of tools like SIACharts in offering immediate and ongoing guidance to navigate markets. Using charting analysis to highlight investment opportunities, it liberates advisors from daily analysis rigors. SIACharts aids in identifying top investment prospects and offers risk management tools to minimize drawdowns and enhance the total capture ratio.
<strong>Thank you for listening!</strong>
<h2>Timestamped Highlights</h2>
Importance of having a framework to navigate changing market conditions [00:00:15]
Importance of charting analysis and point and figure charting [00:02:05] The usefulness of charting analysis and point and figure charting
Shift in market leadership [00:08:04] The speakers discuss the importance of having an exit plan and tools to adjust one’s narrative.
The winter of discontentment [00:10:31] Paul Kornfeld talks about the quarterly outlook and recap, called “The Winter of Discontentment.”
Concentrated Market [00:17:41] Discussion on the current market conditions, including the concentration of the market and the performance of underlying stocks.
Asset Allocation and Risk Management [00:18:30] Importance of having a framework to navigate changing market conditions.
Asset Class Rankings [00:23:17]
Point and Figure Comparison Charts [00:24:09] Explanation of the methodology behind the rankings.
Identifying Long-Term Trends [00:26:31] Importance of longer-term trends in the market and how the rankings help advisors make informed decisions for their clients.
European stocks and international opportunities [00:30:56] The speakers discuss the surprising performance of (surprise) European stocks despite the ongoing war and energy vulnerability.
ETF country heat map tool [00:33:17] Paul Kornfeld introduces the new ETF country heat map tool, which visually shows the performance of different countries and sectors over timeframes.
Following the money [00:38:04] The speakers discuss the importance of following the money and tracking money flows
Avoiding hitting bottoms [00:39:27] Importance of avoiding dead money in the portfolio and staying out of trouble.
Sector analysis [00:40:23] Using charting analysis to visually see the money flowing in and out of markets and the importance of sector analysis.
Short-term overbought/oversold [00:43:06] Understanding short-term overbought/oversold sectors, portfolio weighting and timing.
Using the Reports Tactically [00:48:28] Paul Kornfeld encourages advisors to use the reports tactically as a confirmation tool for allocation decisions.
Staying Away from Banking [00:49:24] Paul Kornfeld provides an example of how the reports e.g. helped advisors avoid sectors like banking, which has been red since December and has fallen by 18% over the last quarter.
Finding Opportunities in the Market [00:50:54] Paul Kornfeld discusses using a top-down approach and combining sectors to find the best names.
Eliminating Guesswork with Relative Strength [00:52:53] We discuss how using relative strength eliminates guesswork and biases when deciding where to invest.
Saving time in volatile markets [00:56:51]
Reservations about technical analysis [00:59:25] Paul Kornfeld addresses two reservations about technical analysis.
Using SIA Charts to empower advisors [01:05:13] Paul Kornfeld discusses how SIA Charts can empower advisors.
(One of) SIA Charts’ Most Valuable Feature [01:08:59] Paul Kornfeld discusses the most valuable feature of SIA Charts.
Risk Management and Analytics [01:10:34] SIA Charts’ biggest value add is risk management, which is not talked about enough.
Simplifying analysis for advisors [01:16:12]
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Where to find Paul Kornfeld and SIACharts:
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Paul Kornfeld on Linkedin
SIACharts on Twitter
SIACharts on Linkedin