Investors Weekly Update: Bonds Over Equities
Jack Chan | May 29, 2016 03:49AM ET
Our equity/bond 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&P 500 is on major sell signal, ending the major buy signal from early 2012.
Oil sector is on a major sell signal since September 2014. Investors should wait for a new major buy signal to begin accumulating oil stocks.
Summary
Current investing model favors bonds over equities, therefore, investors should overweigh their portfolios with bonds over stocks for safety.
Cash is also a position for those who are un-invested or under invested until this model favors equities again.
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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