Mechanical Investments

DiddlyD33

Hello,

I have £10,000 to invest and i'm thinking of trying a long term mechanical investment strategy. Can anyone suggest any?

Aegis

Ok, this is actually a new term to me... What's a mechanical investment strategy?

purch

What's a mechanical investment strategy?

One where you disengage the brain and just follow the 'set' rules.......i.e. Buy equal amounts of the 30 stocks in the Dow, and then adjust the weightings annually

P.S. Sounds like the majority of Fund Managers to me :rotfl:

Aegis

Not my sort of thing at all then. I like to think about my strategy long and hard at times, and will decide to move things about a bit if I feel like it.

Not too much of course, but a little.

MoneyTown

But if the mechanics use value and growth measures in the calculations they could outperform emotional human brains.

purch

Google 'Dogs of the Dow'...............that's a well known Mechanical Strategy

Mr_Mumble

The Motley Fool faq lists plenty of strategies:
http://boards.fool.co.uk/Message.asp?mid=6527171

The archives of the mechanical boards will have plenty of useful info.

You could have a look at fundamental index tracking too. Invesco have recently introduced RAFI trackers onto the London Stock Exchange via their Powershare branded ETFs.