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Investment Strategies

How ShareMaestro helps you beat the market.

The ShareMaestro User Manual includes several strategies which have a proven track record of beating the market:

Running an effective share portfolio

You can run a share portfolio using ShareMaestro valuations to shortlist the shares which are most likely to outperform the market. The strategy includes several risk controls to minimise risk e.g. using trailing stop losses to lock in profit whilst limiting the downside. There are also techniques to fine-tune your share selections. ShareMaestro's share valuations have a very strong track record. Over the 6 years to the end of 2015, ShareMaestro's 10 best-value shares at the start of each year have delivered a compound annual return of 12.1% compared with just 3.5% for the FTSE All-Share index. A simple stop-loss strategy would have increased this return to 17.2%. These returns exclude reinvested dividends, worth about 3% annually, and transaction costs.

FTSE 100 ETF Strategy

With this strategy, you buy a low-cost FTSE 100 Exchange Traded Fund (e.g. i-Shares) when the ShareMaestro FTSE 100 valuation is at least 105% of the market price. You then hold this position until the ShareMaestro FTSE 100 valuation has fallen to below 95% of the market price. You hold the proceeds in interest-earning cash until the valuation next rises to at least 105% and then repeat the cycle.

The strategy ensures that you are out of the market when the FTSE 100 price is poor value and most likely to fall or tread water. This strategy has a long-term track record of outperforming the best FTSE 100 tracker fund.

FTSE 250 ETF Strategy

With this strategy you use the FTSE 100 buy and sell signals, as described above, but instead of a FTSE 100 ETF, you invest in a FTSE 250 ETF. The turning points of the FTSE 250 track very closely those of the FTSE 100 but the long-term returns of the FTSE 250 have historically been much higher than those of the FTSE 100, because the FTSE 250 bull markets tend to be much stronger. This strategy has a long-term track record of outperforming the best FTSE 250 tracker fund.

FTSE 100 Spread Bet Strategy

This strategy combines the accuracy of ShareMaestro FTSE 100 valuations with the leverage of spread bets to deliver stellar long-term returns. For more details click here. This is a long-term strategy. You can choose the level of short-term risk which you wish to incur. The highest level of short-term risk has delivered the highest long-term returns.

FTSE 250 Spread Bet Strategy

This strategy combines the accuracy of ShareMaestro FTSE 250 valuations with the leverage of spread bets and the seasonality of the FTSE 250 price growth to deliver stellar long-term returns. For more details click here. This is a long-term strategy. You can choose the level of short-term risk which you wish to incur. The highest level of short-term risk has delivered the highest long-term returns.

Transforming your pension

Using the FTSE 100 ETF strategy, you could enjoy a pension 8 times greater than by using the traditional money-purchase approach. This traditional approach uses high-cost, low-return commercial pension funds to build up a pension fund during your career. On retirement, you then use this accumulated fund to buy a commercial annuity which provides your pension. These commercial annuities offer dreadful value. They are also inflexible. When you and your spouse (if applicable) have died, the annuity normally dies as well, leaving nothing for your dependants.

The ShareMaestro pension strategy should deliver a much higher pension through:

  • building up a much bigger fund by the time of your retirement
  • using this fund much more effectively through a self-invested annuity than purchasing a commercial annuity.

Full details of this strategy are given in the ground-breaking book by Glenn Martin, the developer of ShareMaestro: How to Value Shares and Outperform the Market.