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Astrology and the Stock Market: When to Dump Your Hedge Fund Manager‏

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Astrology and the stock market is a controversial, yet compelling topic.

Many people have asked me, in so many words, “You’re an astrologer and you do predictions–do you make stock market predictions?” As outlined in this June 17th, 2010 blog post, the answer is yes.

The vast majority of investment experts will tell you that attempting to consistently time the ups and downs of the financial markets and individual stocks is a fools game. If it were possible, there would be at least one trillionaire trader on this planet. See this blog post for more information about stock market predictions, and the folly of financial pros and psychics.

However, it’s entirely feasible to use in-depth astrology and numerology to your advantage to help maximize your investment returns. I wrote the following at the very end of the blog post linked directly above:

“It’s very viable to accurately assess the financial fate of the majority shareholders of a corporation, giving you a very good idea the future outlook of a company’s stock, particularly if the bulk of the shareholder’s or shareholders’ net worth is tied up in the stock. If, for example, 10 individuals own 85% of the stock, identifying dramatic positive or negative financial extremes in those individuals’ comprehensive charts could very well tip you off to major moves in a corporation’s stock price.”

Private equity firms, billionaires, and others invest in hedge funds. One person typically runs a hedge fund. Those who invest in hedge funds need to know if the guy who runs the hedge fund can be trusted and whether or not he is heading for a rough spell (i.e., terrible timing).

While it’s true that very few people invest in hedge funds due to the extraordinary high minimum investment requirement (typically, $25 million USD), my approach can be applied to any single investment professional, or a team of professionals.

My systems of analysis allow me to review the comprehensive charts of anyone, including hedge fund managers, and look for harsh extremes. Additional checks and balances through my associate’s appraisals increase the accuracy of my assessments. The fund manager won’t continue his streak if it’s clear he has tough times ahead.

Negative extremes don’t show up at any given moment in every person’s comprehensive charts. But when they do, it’s a sure sign of trouble.

I recall reading about hedge fund manager Eddie Lampert, featured in Forbes magazine several years ago. I was impressed with his successful track record; his fund was worth more than $15 billion in 2006.

As I always do with interesting people, I looked into his charts back then. The collection of disturbing, long-term time cycles in his not-too-distant future made me think at that time, “Those patterns don’t in any way equate to the type of success he’s enjoying right now.”

While it’s certainly true I could have expressed my conviction of his future difficulties by making speculative bets in the financial markets against his known holdings in 2006, I’m simply relaying my experience and findings exactly as they happened.

Had a potential hedge fund investor consulted with me around 2006 I’d have warned him or her about a specific period of time in Mr. Lampert’s future that symbolized the exact opposite circumstances of the great success he had earned thus far. In other words, I saw major negative timing extremes on the horizon for Eddie Lampert.

Since 2006, Eddie Lampert’s $15 billion fund has declined in value more than 60%. Although it’s unfortunate, his fall from grace was foreseeable, from my perspective. Considering he remains a self-made billionaire, perhaps “fall from grace” isn’t an appropriate description of his plight.

In 2006, people were calling him the next Warren Buffet, but no longer. Eddie Lampert will probably maintain his billionaire status, but his collective timing tells me his 2006 peak won’t be revisited, at least where he ranked relative to his peers in the industry and those on the Forbes 400 list of the worlds wealthiest people.

2013 was a tough year for hedge fund managers, overall. The average hedge fund gained only about 7.5% in 2013, compared to a more than 30% gain in the U.S. S&P index. More information about the surprisingly meager performance of hedge funds in 2013 can be found at Uncommon Wisdom Daily and Bloomberg.

Broad timing trends, negative and positive, are absolutely identifiable through my assessments and can help you greatly limit your risk.

Copyright © 2014 Scott Petullo

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