Doug Fabian's Wealth Strategies Radio Show

Ask Doug

Doug Fabian's MUTUAL FUND LEMON LIST

Did you buy a Mutual Fund Lemon? Find out now by receiving our FREE special report.

Successful Investing

Our unique investment strategy — which we call the Fabian Plan — and year-round customer support service is like no other. It solves all of the major problems you face as an investor, while providing everything you need to succeed.

You’ll always know the market’s direction so you can capture profitable uptrends and avoid hazardous downtrends.

You’ll work toward 10% annualized compounded growth on all of your mutual fund investments with a 100% allocation to the stock market when appropriate.

You’ll see the power of tax-deferred investing to help you attain even more growth on your money.

You’ll learn how to eliminate principal losses… mediocre returns… worry and emotional decision-making… guesswork and investor error.. and out-and-out financial rip-offs.

Best of all, Successful Investing is easy to follow because we do all of the hard work for you. Your job of accumulating wealth will require no more than a few minutes per week.

As you can see, we’ve eliminated everything that could cause you to fail, we’ve provided everything you need to succeed, and we’ve simplified the entire process so that you can relax and enjoy your good fortune.

In the sections that follow, you’ll learn the Fabian philosophy, simple rules that have guided us to wealth for over three decades.

Since we do most of the work for you, following the Fabian Plan takes just a few minutes per week. Still, we want you to know how it works, so you’ll have the confidence to act on our Buy and Sell signals. In this section, we’ll explain its operation, but keep in mind that you won’t need to make any of the trend-identifying calculations yourself.

The Fabian Plan is a mechanical trend-following approach to stock market investing. Instead of using guesswork, predictions, forecasts, or emotions, we base our investment decisions solely on the established trend of the market.

Simply put, we’re in the market when it’s going up, and we’re out of the market when it’s going down.

Historically, the stock market has always moved in upward or downward trends that last for several months or even a year or two. In real-life investing since its inception in 1977, and in our research going back to 1926, the Fabian Plan has proved very accurate in identifying these trends.

Our investment vehicle are ETFs and mutual funds, specifically stock funds and money market funds. The stock funds give us the dramatic profits we need during market uptrends. And the money funds give us the protection we need during market downtrends (plus a little profit).

39-Week Moving Average
Since, historically, market trends last many months and sometimes years, we have learned that 39 weeks, or about 10 months, is an accurate period for trend identification. And thus we use a 39-week moving average in our trend-identifying formula.

The 39-week moving average smooths out the widely oscillating weekly price movements so that a clear picture of the trend emerges. We calculate the 39-week average for any indicator by adding up its weekending prices for the past 39 weeks and dividing by 39. This gives us a single reading that is an average of the past 10 months.

We obtain a new reading for the 39-week moving average each week, by adding in the latest weekending price and subtracting the one from 40 weeks past. Plotted on a chart, these readings give us a smooth line that is either rising or falling, depending on the prevailing trend.

Trading Rules
A strong or rising market is indicated when the current prices of our indicators are higher than their 39-week averages. A weak or falling market is indicated when the current prices are lower than their 39-week averages. This simple comparison — the current price to the 39-week average — reveals the current trend of the market and forms the basis of our trading rules.

Satisfy your investment appetite daily, weekly or monthly!

I like to think of the Successful Investing service as one big smorgasbord. While our Buy and Sell signals and fund recommendations certainly constitute the meat and potatoes of the plan, other daily, weekly and monthly components add to a great spread.

Buys and Sells
First and foremost, whenever there is a change in the plan, such as a Buy or Sell, you will receive a Special Hotline Bulletin via fax or e-mail (whatever way you originally requested) and it will be posted on Fabian.com immediately. When a Buy is issued, we will also include a list of fund recommendations appropriate for that cycle.

Weekly Hotline
Outside of that core information, everything you need to put the plan to work for you is included in the Weekly Hotline. Here’s where you’ll find my commentary on the market’s trend (and Fabian philosophy), closing prices, averages and the weekly percentage change for our domestic and international composites (our trend-tracking indices), funds within these composites, our confirming indices and leading market indicators.

Monthly Newsletter
The printed monthly newsletter is your ticket to the Fabian philosophy. It’s here you can find tips for Getting Started, articles on new investment vehicles, the status of the plans, charts, trends, everything for the student of the market.

While we do include fund recommendations for Domestic, International and Variable Annuities, this should not be your primary source for getting our buy and sell signals. The timeliest components of the plan are the Telephone Hotline, email bulletins, and website.

If you’re convinced SI is the service for you, click here to sign up or call 1-800-FABIANS.

Note:Doug Fabian is the editor of three paid investment newsletter services owned and published by Eagle Publishing, Inc. The editorial duties performed by Doug are incidental to Fabian Wealth Strategies and are not considered investment advice for client portfolios. Doug is bound by the Eagle Publishing Editors Security Trading Policy that is intended to ensure compliance with all federal and state securities laws.