Technical Analysis Beats Fundamentals Any Day Of The Week

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Chris joins Pat on The Just Word Podcast to delve deep into technical trading and asset revesting.

Here is a summary of the podcast: Renowned investor and author, Chris Vermeulen, has a unique perspective on investing, preferring a style he coined “asset revesting.” This approach emphasizes the ownership of growing assets, aiming for substantial returns, moderate drawdowns, and profits even in bear markets.

Vermeulen explains that investment strategies typically fall into two categories: fundamental and technical analysis. While the former involves investing in companies that are making money and growing, the latter – the approach he uses – focuses on interpreting investor sentiment through price trends.

Vermeulen puts it simply, “As investors, we only make money when the investment goes our way.” Thus, his method doesn’t involve holding assets that are decreasing in value. This perspective requires technical analysis to understand when prices are likely to rise or fall.

The cornerstone of this approach is following trends across all time frames. Traders must identify trends for their specific trading timeframe, not attempting to pick tops or bottoms but rather waiting for a trend to emerge and then managing their position accordingly.

When asked how he recognizes a trend, Vermeulen cites his reliance on 20-day and five-day moving averages. A rising 20-day moving average with the price above it indicates a strong likelihood of continued upward movement. The same principle applies in reverse for a downward trend.

While price is priority one, Vermeulen also considers volume to gauge investor sentiment, even though it’s not a direct trigger for him. He uses it to understand the overall feeling of market participants, providing insight into potential market movements in the following days.

One may wonder what “asset revesting” entails. Vermeulen explains that unlike traditional investment strategies, which involve diversified portfolios and holding through bear markets and major corrections, asset revesting involves examining an asset hierarchy. He identifies his preferred trading assets and moves from one to the next, depending on which is in an upward trend.

Even though Vermeulen mostly talks about stocks and stock prices, the concept of asset revesting also extends to other assets. He mentions that the principle could be applied to property, through real estate ETFs. However, he cautions that these don’t behave exactly like real estate itself, so it’s crucial to be aware of the distinctions.

Many investors stick with fundamental analysis, unaware of technical analysis or finding it too intimidating. Vermeulen emphasizes that learning to use technical analysis is not as daunting as it may seem. The key is to be active, adaptable, and aware of market conditions, investment assets, profit targets, and stop points. He covers these things in his books Asset Revesting and Technical Trading Mastery.

In closing, Vermeulen highlights the importance of capital protection for self-directed investors, particularly those who are retired or nearing retirement. His website,, provides ETF signals and research for those wanting to secure their capital, outperform markets, and seek annual profits. His overarching message is clear: Guarding your money is essential, and if you avoid losing money, the profits take care of themselves.

To learn more about Chris and his Asset Revesting strategies:

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Disclaimer: None of this material is meant to be construed as investment advice. It is for education and entertainment purposes only. The video is accurate as of the interview date but may not be accurate in the future.