Ask Colin

Having incurred significant paper losses based on Rivkin Report recommendations since 2000, would it be a better strategy to incorporate technical analysis into my decisions, notwithstanding Rene's negative attitude to charting?

I think that the big strength of fundamental analysis is that it indicates what should rationally happen to prices. However, markets are not always rational and may take some convincing that a story is OK. So, both Huntley and Rivkin, who both don't much like technical analysis, do get it right, but often they can be a year or more too early.

Technical analysis does not have anything to say about whether a price is too high or too low. But it does tell us when the market is re-rating a stock and it is trending up. So, it gives us a timing element that fundamental analysis lacks.

Rivkin would be a better adviser if he used a technical filter on some of his picks. Still, you can do that for yourself, now I am teaching you what to look for.

Keyword: