Investors Weekly Update
Our equity/bond model - This long-term reliable investing model provides investors with simple decision making in the markets:
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When the model favors stocks, investors should overweigh in equities for maximum growth.
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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 February.
Oil sector remains on long-term sell signal as of end of February.
VIX – volatility index
VIX is up and markets are down.
VIX is now at level of 2008, the last major correction.
The major correction in 2000 was 50%.
In 2008 it was 60%.
If the current sell off is the start of another major correction, downside target is near the 200ema between 1600 & 1700.
Summary
The long-term signal remains on buy at month end.
However, the current investing model favors bonds, therefore, investors should continue to overweigh with long bonds or bond ETFs for safety over growth.
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. www.simplyprofits.org
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