Investors Weekly Update

March 20, 2021

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 S&P500 remains on long-term BUY signal as of end of Feb.

Oil sector remains on long-term BUY signal as of end of Feb.

VIX – volatility index

VIX is now down and some markets are up.

Are yields really breaking out?

My chart says no.

It is only bouncing from a new low due to COVID19.

Inversely, bond prices are pulling back from the new high.

Looking at it closer, both the yields and bond prices are backtracking to the pre COVID level, and may overshoot a little before resuming their respective long term trends.

Summary

Our long term stocks/bond model is in favor of stocks over bonds.

Investors should overweigh their portfolios with stock/stock ETFs for maximum growth.

The energy /oil sector has a new long term buy signal and should produce above average return over the next few years.

Disclosure

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.

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Silver has 47 protons and 61 neutrons

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