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 S&P500 is on a major buy signal since early 2012.

Oil sector is on a major buy signal since early 2013.

There are two warning signs which I will be monitoring if and when the chances are increasing for another Armageddon:

• VIX begins to spike up above 20.
• Long term TL support for $SPX is broken.

Until then, this is a bull market and we should be buyers at cycle bottoms with prices at or near the daily 200ema.

Summary

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 since Nov 2012, 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.

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.

We also provide coverage to the precious metals sector.