WHAT IS ASSET REVESTING

Asset Revesting: A Smarter Way to Surf the Markets?

1. Introduction – Beyond Buy-and-Hold

• Most people still follow the model: buy, hold, pray.

• Chris Vermeulen’s "Asset Revesting" offers a different methodology – one where your capital moves with the momentum of the markets, not against it.

• It's a dynamic, trend-following strategy rooted in technical analysis and market discipline.

This post explores what Asset Revesting is, how it works, what technical terms underpin it, and – crucially – where its limits lie.

2. What Is Asset Revesting?

• The core idea: Revest - re-invest - capital into assets with upward momentum.

• It's neither traditional trading nor passive investing – it’s a hybrid of tactical capital preservation and opportunistic rotation.

• Vermeulen's philosophy is: stay out of downtrends or use invesrse ETFs, move into uptrends, and be in cash when nothing looks good.

3. Vermeulen’s Rules in Practice

• Use moving averages and momentum signals to identify entries and exits.

• Exit when momentum fades – no need for ego, don't listen to media narratives.

• If nothing meets criteria, sit in cash and wait.

Examples:

• Rotate out of tech into gold miners if momentum shifts.

• Move into defensive ETFs like XLP or XLU during corrections.

4. Glossary – Terms You Need to Know

• Moving Average (MA) – Average price over X days, showing trend.

• RSI (Relative Strength Index) – Signals if an asset is overbought (>70) or oversold (<30).

• Overbought/Oversold – Suggests price may reverse.

• FOMO (Fear of Missing Out) – Emotional mistake of entering late.

• Support/Resistance – Horizontal zones where price tends to bounce or stall.

• Volume Analysis – High volume confirms strong moves.

• Stop-Loss Orders – Predetermined exits to protect capital.

• Position Sizing – How much capital to risk on a trade.

• Stage Analysis – Recognises the four market phases: Accumulation, Advance, Distribution, Decline.

5. What Makes Asset Revesting Different?

• Avoids the dead money trap of holding losers, hoping they'll revive.

• Emphasises trend-following with strict exit criteria.

• Encourages unemotional, rule-based decisions.

• Views cash as a valid position – a radical but important shift.

6. A Word of Caution – Vermeulen’s Own Critique

• Vermeulen acknowledges the paradox which is that most clients don’t follow through.

• Why?

  • Lack of discipline.

  • Emotional trading.

  • Misunderstanding technical signals.

“The system works... but only if you do.” - Vermeulen

This isn’t plug-and-play. It demands commitment, learning, and honest self-assessment reviews.

7. Where Asset Revesting Shines

• Works well in trending environments.

• Protects capital in downturns.

• Ideal for active investors who want more control than general passive ETFs but less stress than day trading.

8. Where It Struggles

• Choppy, sideways markets generate false signals.

• Requires time and consistency to learn the indicators.

• Can underperform in explosive rallies if signals lag.

9. Should You Use It?

You might consider it if:

• You’re frustrated by buy-and-hold.

• You want structure and do not want pure speculation.

• You can follow rules and manage your emotions.

You probably shouldn’t if:

• You want set-and-forget investing.

• You’re uncomfortable with technical charts.

• You expect instant gains.

10. Final Thoughts – A System for the Serious

Asset Revesting offers a disciplined, rule-based way to manage risk and stay in tune with the market.

It’s not easy.
It’s not foolproof.
But it’s one of the few strategies that tries to make rational use of price action without the delusion of prediction.

If you’re willing to learn the ropes, the rewards – especially protection in drawdowns – may be worth it.

11. Where to Learn More

• Asset Revesting – 2nd Edition by Chris Vermeulen

• TheTechnicalTraders.com

• Daily commentary on Chris Vermeulen’s YouTube Channel

Also Recommended:

• Brent Johnson – Dollar Milkshake Theory

• Lyn Alden – Macro research

• Russell Napier – Financial repression & capital controls

• Luke Gromen – forestfortrees.substack.com

• Zoltan Pozsar – De-dollarisation frameworks

• Joseph Wang – Treasury & Fed liquidity dynamics