04/27/2011
This week marks the final Alert for April, and all month, we’ve been celebrating the anniversary of our flagship publication, Successful Investing. This April marks our 34th year of helping investors protect their serious money, while achieving market-beating returns.
One way we’ve been able to achieve this success is by adhering to the advice of my father, Dick Fabian, about following the trends in the market. Back in the 1970s, Dick developed a method of tracking the market that centered on what then was a little-followed indicator, the 39-week moving average. In fact, I remember tracking this index and plotting the data by hand for subscribers of what then was called the Telephone Switch Newsletter.
The simple brilliance of using the 39-week average was that it allowed you to see where the overall market was in relation to its wider trend. If stocks were below the 39-week average, then stocks should be avoided. If stocks were trading above the 39-week average, it was safe for investors to buy.
This tracking of the 39-week average was relatively new back then, but now, it’s common. In fact, it’s hard to see a chart these days without the 200-day moving average plotted on it, and this metric is essentially the same as the 39-week moving average my dad began tracking back in the 1970s.
So, even though we’ve seen technology change, and even though it’s very common to see people tracking the 200-day moving average these days, the fact is that the Fabian Plan has used these concepts for the past 34 years. That means we’re no Johnny-come-lately to this game.
The bottom line here is that the Fabian Plan, used by our flagship publication, Successful Investing, has been helping investors make money in stocks for more than three decades, and we plan on doing more of the same over the next three decades.
So, for the final time this year, happy anniversary!