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 back on long-term BUY signal as of end of October.

Oil sector remains on long-term SELL signal as of end of October.

VIX – volatility index

VIX is down and markets are up.

VIX spiked up to over 40 last week, and since the bull market which began in 2009, these VIX spikes have proven to be good entry points.

Consolidation has ended at three waves with a breakout this week.

Summary

Our benchmark S&P500 is on a long-term BUY signal.

However, the current investing model remains in favor of bonds, therefore, investors should continue to overweigh with long bonds or bond ETFs for safety over growth. This may change at month end.

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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