This is a little quiz. Below is a simple weekly chart of NVDA with a 30-period moving average plotted.
Moving averages are simple but effective tools for defining the underlying trend of an instrument. The question is can you spot those times when you should be a buyer of NVDA?
So is the point of this little missive to bash the local superannuation industry? In part yes as I cannot pass up an occasion when I can belt the most self-congratulatory underperformers in the advisory industry. But it is also to show that position trading or long-term investing is not a difficult task – despite what you may have been told. Simple rules and simple tools can get you a very long way.
If you were able to correctly identify the point on the chart where the NVDA is trending up then you are closer to having a long-term portfolio strategy than AustralianSuper is.
PS: From what I can tell from their website AustralianSuper consistently underperforms each major index they compete against – hardly surprising really.