AlphaDow on Funds

Here’s how AlphaDow traded some of the biggest mutual funds in Canada over the past ten years.  You can overlay AlphaDow on your existing  funds by switching to money market fund when AlphaDow is on a SELL signal.   Send an email to for more details on how to do this.

Our latest update chronicles the ups and downs of one of the oldest and most reputable Investment Counselors in Canada.  As you can see from the chart below, the bear market of 2007-2009 did not spare this blue chip behemoth.  In fact, if you were a buy and hold investor during this period, you watched your account erode by almost 44% in value.  That means that an account that was worth $1,000,000 in May of 2007 went down to as low as $560,000.  I know of more than a few people who actually suffered through this white knuckle ride.

AlphaDow on the other hand, focuses first on risk control.  We looks at five un-emotional indicators such as interest rates, commodity prices, utility stocks, transportation stocks and buying power.  When all five are switched ON, we are fully invested.  Completely objective investment advice doesn’t fall victim to expert opinion or the talking heads on the television.  Your goal should be to remove the emotion and subjectivity from investing.  Let’s take a look at how AlphaDow did on one of the most venerable investment funds in Canada (click for larger image):

Click on the report for a larger image.  Notice that AlphaDow improved buy-and-hold performance by 92.63% (top right number):

Wouldn’t it make sense to at least have this information available to you BEFORE the next big drop?  Email us right now at for a complimentary report just like this on your existing mutual fund and stock holdings.

Canada’s 2nd largest investment fund, the $14 billion dollar Dividend Fund (from the blue bank) lost almost half of its value in the crash of 2008-09.  In fact, the fund dropped from a high of $52.23 on July 20th, 2007, to a low of $28.88 on March 9th, 2009, putting investors through a gut wrenching 46% drop in value.

That means if you had $100,000 invested in the fund at the top, your account was worth only $54,000 at the bear market bottom.  This type of emotional and financial roller-coaster is exactly what AlphaDow helps you avoid.  The largest drop in value you experienced using the Dividend Fund described and AlphaDow was 13.48%.   AlphaDow got you into the safety of money market fund (cash) for 1145 days in the past ten years (nearly 1/3 of the time!).  Click on the images for a larger view:

You can also email a list of your investment holdings and I will personally respond with an AlphaDow report just like this one:

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