Investors weekly update
Our equity/bond model - This long term reliable investing model provides investors with simple decision making in the markets:
- When the model favors stocks, investors should overweigh in equities for maximum growth.
- When the model favors bonds, investors should overweigh in bonds for safety.
Our benchmark SP500 is on a major buy signal since early 2012.
Oil sector is on a major buy signal since early 2013.
A four year cycle bottom is expected some time in 2014 similar to the cycle bottom in 1982, and as long as the bottom is above the 2010 cycle bottom at 1011, it will be a major buying opportunity for long term investors for years to come.
Current investing model favors equities and both the growth and energy sector are on major buy signals. However, there has not been a multi week correction in the major indexes for over a year now, most likely due to the four year cycle phenomenon and influence. Investors need to manage risk while new money should wait for the confirmation of a four year cycle bottom some time in 2014.
We do not offer predictions or forecasts for the markets. What you see here is our simple investing model which provides us with simple investing decision making. Entry points and stops are provided in real time to subscribers, therefore, this update may not reflect our current positions in the markets.
Jack Chan began investing in 1976, and became an active trader in 1998 using technical analysis. He began sharing my trading model with a few like-minded fellow traders in 2001, and the circle began to grow. The teaching and mentoring became a full time job, and by late 2003, he had to leave the family business and launched his advisory service in early 2004. Visit his website at www.simplyprofits.org.