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So, how did you do overall for the year 2023?
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Jordan Belfort, The Wolf of Wall Street, pretty much says an index fund is way to go, like the S&P 500 .I used actual large cap funds that are available in my retirement accounts. I could not use the actual S&P 500. So the following results are theoretical and not claimed to be my actual. However I did do approximately as well.
The system bought S&P 500 at 4183.03.
The S&P 500 closed the year at 4769.82 with me still 100% long.
That's a difference of +586.79 which comes out to +14.02%.
By my calculation the S&P 500 closed the year up 23.78%. So at first glance it appears that S&P 500 buy and hold would have greatly outperformed my Monthly Retirement Slow Trade System. But that is an illusion.
The S&P 500 started 2023 having dropped a long way below the 20 month moving average. So a non-trivial amount of that 23.78% was just to get the S&P back above the 20 month moving average.
My slow trade system never was long below the 20 month moving average. So I didn't take on all that downside. My cash was secure and earning some interest while sitting in cash during the contretemps. I had sold in April 2022, and was sitting flat until re-entering in June 2023.
It is from June 2023 that I made my 14.02%.
[This system is super slow and boring, and I love it very much.]
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This is a revealing interview.Jordan Belfort, The Wolf of Wall Street, pretty much says an index fund is way to go, like the S&P 500 .
Good question, and I had not thought much about that.Assuming that you might be in stocks long enough to generate a dividend and/or capital gain distribution, do you reinvest or send the divs/gains to cash?