The liquidity driven rally is going to have to get some legs on its own, or there will be big problems very shortly, says Andrew Horowitz, president and founder of Fort Lauderdale, Florida based Horowitz & Company.
Andrew, who has built a major presence on the Internet at www.thedisciplinedinvestor.com, argues that investors are getting worn out by an onslaught of contradictory news coming out of Washington, and can pull the rug out from the market very quickly.
‘When the risk switch is flipped ‘on,’ traders pile into positions, and when it is flipped ‘off’, they pile out just as quickly,’ says Andrew.
Virtually every technical indicator he follows was flashing overbought in mid January, forcing Andrew to dump half his long positions. Andrew uses a holistic approach to the market which he calls ‘QantaFundaTechna,’ which blends quantitative, fundamental, and technical approaches to generate buy and sell recommendations on stocks, mutual funds, ETF’s, and options. He is only using mutual funds in the offshore small cap arena where managers can use language and knowledge of local business and accounting practices to add value. His strategy enabled him to get through the disastrous 2008 and 2009 with low single digit returns, even though many technical and fundamental models were blowing up, allowing him to live to fight another day.
Andrew is a registered investment advisor, blogger, and podcaster extraordinaire. His podcasts, 145 of which have been posted so far, and are rated among the ‘Top Ten iTunes’. He lists among his most interesting interviewees former labor secretary Robert Reich and hedge fund manager Dennis Gartman.
In 2007, Andrew has published a book about his approach called The Disciplined Investor-Essential Strategies for Success. He also writes for AOL Finance and MSN Money. Longer term, Andrew, who now has $80 million in high net worth customer accounts under management, prefers, South Korea (EWS), Singapore (EWS), Brazil (EWZ), and India (EPI). Technology still has a long way to run, and among the commodities, coal looks interesting. He likes the precious metal, and thinks he’ll get more bang for the buck with silver versus gold. In the end, Andrew believes that we are all going to have to work a lot harder and smarter to get decent returns.
Hedge Fund Radio is a weekly program featuring one-on-one interviews with the titans of the hedge fund industry. The show is hosted by legendary hedge fund manager John Thomas, one of the most seasoned players in the industry. It is broadcast live on station KGOL 1180 AM in Houston, Texas as part of the BizRadioÂ network to 100,000 local listeners, and will be streamed online to a further 100,000 national and international listeners.
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