THE 12% SOLUTION: Earn A 12% Average Annual Return On Your Money, Beating The S&P 500, Mad Money’s Jim Cramer, And 99% Of All Mutual Fund Managers… By Making 2-4 Trades Per Month

THE 12% SOLUTION: Earn A 12% Average Annual Return On Your Money, Beating The S&P 500, Mad Money’s Jim Cramer, And 99% Of All Mutual Fund Managers… By Making 2-4 Trades Per Month

Posted by jack_miller | Published a year ago

With 157 ratings

By: David Alan Carter

Purchased At: $17

How to make money in stocks?

First step: don't trade stocks. In a radical departure from most investment books, a former day trader demonstrates how a simple asset allocation strategy that 'adapts' to changing market conditions has delivered a 12% average annual return over the past 10 years.

What does 12% mean?

If you're familiar with investing basics, you'll know that figure comes close to doubling the average return of the benchmark S&P 500. It also outperforms 99% of all mutual funds.

But what's outperformance without protection? When the S&P 500 crashed in 2008 and lost 37% of its value, this plan actually returned +10.9%.

Beat the market with this unique ETF trading system.

Beat The Street and build long-term wealth in the stock market with this simple ETF rotation strategy that automates decision making, reduces risk and volatility in your portfolio, and lets you sleep soundly at night without worries of market bears or bursting bubbles.

A trading strategy that’s not pie-in-the-sky and not just a bunch of theory, but rather a systematic plan employing index fund ETFs and backed up with real numbers. A trading plan that’s understandable, repeatable, that works and works simply.

Anyone can do this.

Whether you're new to stock market investing, or a stock trading veteran grown wary of Wall Street gurus with subpar track records touting the latest hot stock that underperforms the minute you buy it, this will make sense.

In easy-to-understand language, you’ll discover...

  • The six index fund ETFs that power the strategy, and why.
  • The simple technique for identifying which of those ETFs to buy, and which to sell -- and most importantly, when.
  • How $5,000 can end up $1,000,000 in your retirement portfolio.
  • How to protect your portfolio during market downturns with a simple cash trigger.

In short, how to earn an average of 12% annually in the stock market with minimal trading, less volatility, and less risk.

Make money trading without obsessing.

If you have 20 minutes a month and a computer, you can turn any investment amount into a steadily growing compounding machine that will make you the envy of Mad Money’s Jim Cramer and 99% of all mutual fund managers.

Make just 2-4 trades one day a month. The strategy tells you what ETFs to buy and what to sell. That’s it. Then turn off the computer and go live your life.

Start Making Your 12% Today.

Scroll to the top of the page and select the “Buy Now” button.

The author makes a fair case for his theory on investing ......But the 10 year time frame he references is from the Crash of 2008 to 2017 is NOT representative of the typical up and down cycles usually experienced in long term investing. His case revolves around one of the longest Bull Markets ever experienced. Had he "back-date-proved" his theory for a longer period (1998-2017) t he case would be far less compelling. As with most financial books, good returns will be made in Bull Markets but when you mix in the "down years" the returns would be closer to 9%. Altogether not a bad return be fair, the author does offer the wistful caveat "to be mindful of early redemption charges for trades of less than 30 days" as well as fund or ETF fees. But his entire time frame for trades IS - THIRTY DAYS - therefore you will be sure to incur early redemption fees 90% of the time. Then there are the inevitable short term gain taxes. When all is said and done, with all these fees chipping away, before you know it your returns are whittled down to the 7-1/2 % range. At the beginning of the book the author tells of Warren Buffet's "bet" in the S & P 500 Index ETF, which is tax efficient and has produced a return of 7.1% annually without the need for costly and somewhat risky monthly trading .........No muss.......No fuss.........No bother........Buy and Hold........Steady the course.......As they say: "It's a No-Brainer". Still, on a grand scale the extra .4% might prove telling over 20 years. In sum, the book is a fast read, being a scant 71 concisely written pages that have end of chapter bullet summaries for clarity of thought. The book is definitely a cut above the myriad of other "Financial Guru-Gobbledygook" books loaded with incomprehensible charts and untenable theories that can best be divined only through a Wegee Board or several degrees from Harvard or Wharton Business Schools. The books a "BUY" but if only to prove the veracity of the Wizard of Omaha's simple theory on investing for 99% of the population.

- alexia_lopez

The book is a wonderful piece on how to earn additional percentage points over a typical buy and hold investment strategy. The concepts have a lot to offer the average investor doesn't want to pay a financial planner to try to get higher returns. The strategy showcases how anyone can get higher returns without giving your money to someone else. There's nothing really revolutionary about it, but the author does a great job of explaining a simple strategy that anyone can implement. Not to mention doing all of the back testing for us.

A quick aside on some other reviews. Some of criticize the book because of the possible tax implications. If you're worried about the tax implications, just run the strategy inside tax-deferred accounts. Not to mention the fact that buy and hold investing the S&P 500 had a 50% + draw down in 2009, and the NASDAQ had a 70% reduction in its value in the years around 2000 to 2002. The book gives you a strategy to avoid those losses. It seems to me like paying taxes on a positive result is a reasonably small problem as opposed to trying to recoup 50% to 70% of your investment on a simple buy-and-hold strategy. Let's be clear. No one ever went broke paying taxes! You have to have a positive P & L before you have to pay taxes. I would pay taxes all day long in order to avoid those debilitating losses suffered in 2000 and 2009!!

I also saw some reviews that questioned the back testing validity. Pretty much every online broker has a platform that you could backtest the strategies. I think it's a little harsh to be calling the strategy "nonsense" considering anyone could easily run the same back tests and come to the same conclusion the author did.

Anyway, the book is a pretty solid strategy for adding percentage points to your annual returns over a long period of time. It's not going to make you rich overnight. However, it will probably make you rich enough to retire early. That's all we can ask for.

- maxine_kelly

The 12% Solution was delivered to me last night. I read it last night. I've just finished conducting my own back testing using ETFReplay. The back testing results show a CAGR of 14.3%, Volatility at 10.9 and a -11.8 Max draw down. When I test I always want to see what the strategy would have made or lost in 2008. The back test results show the strategy would have gained 10.9% versus a lost of -38% for the S&P. I wanted to see if I could improve the results. I substituted IWM and replaced it with EFA. This improved the CAGR to 15.2, reduced the Volatility to 10.7 and reduced the Max draw down to 11.4. I read the other reviews and there were some good points made. David Alan Carter should be commended for writing this book. I've read a lot of investing books in the past and most of them are too long and contain little or no substance of value. The 12% Solution is concise, to the point and worth owning if you want to make money trading ETFs without a lot of hassle.

- jax_perez

Great book, straight forward and to the point with statistical data to prove his point. NOT a book for those whom want to "Get rich quick, this is patience and a super low investment of time and energy, literally put a few stocks into a graph online and bam, your done for the MONTH, way different than what i'm used to with day trading, looking at charts all day everyday. This is a set it and forget it approach.

The book takes advantage of compound interest, if you use sound fianacial principles, save/invest 10% or more of your income, I save 50% (10% cash for emergencies, 40% to invest) and never touching that money.

Slow and steady wins the race, keep working your 9-5 and get rich the best way possible, the market.

Also the book shows how to minimize losses turning economic downturns (which happen abruptly and unpredictably) and allow for the funds to even climb during a recession...HA take that economy!

Get the book read it, and live your life without stressing over investing or trusting someone else to manage your hard earned money! :)

- kylen_richardson

... und dabei immerhin so ehrlich, dass der aufmerksame Leser allem Phrasengeklingel des Autors zum Trotz erkennen kann, dass das System dem eigenen Anspruch eben nicht gerecht wird, nämlich systematisch das Risiko aus den Investments herauszunehmen.

Im Einzelnen: das vom Autor vorgestellte System hat eine momentumgetriebene Wachstums- und eine Hedge-Komponente. Gute Idee eigentlich. Er hat den Anspruch, das von Warren Buffett einem breitem Publikum vorgeschlagene Buy&Hold-Modell für den S&P500 (mittlere Rendite in den Jahren zwischen 2008 und 2016 ca. 8,5%) um 3,5% p.a. zu schlagen. Das gelingt dem Autor auch.

In den Backtests.

Wer genau hinsieht, erkennt, dass der Vorteil des "12%-Systems" in den Jahren 2008/2009 entstanden ist. Danach hat es die Performance von Buy&Hold dramatisch verfehlt. in 6 von 10 Jahren war das Halten der Aktien besser als das "Optimieren". Dass am Ende die Gesamtperformance besser war, lag alleine am dramatischen Einbruch der Aktien 2008 und dem nicht minder dramatischen Rebound 2009. EIN EINZIGES Ereignis sicherte dem System also einen Vorteil, alle anderen nachfolgenden Ereignisse führten per saldo zu einem systematischen Nachteil. Für einen Systementwickler ein No-Go-Fact! Ein singuläres Ereignis ist statistisch gesehen kein Ereignis, sondern von Zufall nicht zu unterscheiden - v.a. hinsichtlich seiner Auswirkungen. Von daher: wer Momentum-Ansätze verfolgen möchte, der nimmt das Buch von Antonacci zur Hand, dessen Ideen funktionieren seit ihrer Veröffentlichung auch nicht mehr ;-) ...

Man muss sich einfach klar machen: Momentum-Ansätze folgen dem Gedanken, dass Assets gekauft werden, weil ihr Preis steigt. Laut Warren Buffett das dümmste Argument, ein Asset zu kaufen ... Momentum heißt, der Herde hinterherzulaufen. Das funktioniert oft, ist aber eben auch extrem berechenbar. Wer hin und her handelt, ist ein Teilnehmer an einem Kontrahentenmarkt, der misst sich mit anderen Marktteilnehmern, die ihreseits ebenfalls hin und her handeln. Langfristig entscheidet der Wert eines Assets über die Entwicklung des eigenen Investments, kurzfristig aber entscheidet der Preis. Und der schwankt eben nicht nur, sondern das Verhalten der Masse wird von großen Kontrahenten in diesen Preisschwankungen systematisch ausgenutzt. Scharfe Einbrüche sind für professionelle Marktteilnehmer in einem Nullzinsumfeld eine Einladung zum Einstieg, für Momentumhändler ein Signal zum Ausstieg. So geraten billige Aktien in die Hände anderer Leute - nicht die Situation, in der man sich wünscht auf der Verkäuferseite zu stehen. Genau das passiert aber systematisch bei dem hier besprochenen Modell. Von einer Extrem-Baisse abgesehen, bietet es keinen Schutz gegen Marktschwankungen und erfüllt damit seinen Zweck nicht wirklich. Vielmehr hängt sein Erfolg vom Zeitpunkt des Einstiegs ab und ist daher zufällig. Genau dieser Umstand qualifiziert ein schlechtes System!

- kenzie_cooper

This book described a method to personal investing that almost anyone should be able to properly understand and implement. While there may be more sophisticated and elaborate investment approaches out there for the professionals, the method described in this book has not only the advantage of simplicity but has also been proven in backtests covering approximately ten years, including the 2008 bear market. While past performance is certainly no guarantee of future results, the investment approach is based on a few sound paradigms: Use of bonds to hedge shares, buy momentum, keeping costs low and diversifying by using major market ETFs.

- pablo_adams

Only concern is the limited time span for his back testing. I realize that is a limitation of ETFreplay but it would have been nice to go back earlier in time using ETF proxies.

- jordy_lee

I enjoyed this little book and read it was in a couple of hours but it changed my way of analysing the popular ETF market. In simple words the author has done an excellent job in explaining simple system how to improve in a volatile market!

- wells_anderson

Finally someone puts in writing something so easy to understand and follow month in month out.

Thank you very much.

- lexie_brooks

A light weight read that is totally US centric and not for serious investors.

- azariah_sanchez

This is one of the best investment books I have ever read. Straight forward and easy to use strategy using information available online. Well worth the read!

- maxim_morgan

Good and actionable strategy. I'm a user of lazy investing strategies and this one backrest well. I wish David could have included transactional fees in his tables. I will say 2% max for each month rotation (1% to sell, 1% to buy). So at worst a 10% strategy :-) not that bad tough.

- amaya_ramos

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