Investors' Weekly Update: VIX Bouncing Off All-Time Low, Volatility To Increase
Jack Chan | Apr 16, 2018 06:21AM ET
Our equity/bond model - This long term reliable investing model provides investors with simple decision making for 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 a major buy signal.
New money should wait for a correction and cycle bottom to accumulate for long term holding.
Oil sector is on a major sell signal.
Investors should wait for the next major buy signal.
VIX is bouncing off the all time low, suggesting volatility is increasing.
As long as VIX remains below 20 on a monthly close, it’s a correction within a bull market.
Summary
Current investing model favors equities, therefore, investors should remain overweighed with stocks or stock ETFs for maximum growth.
Short term remains choppy and volatile as VIX is bouncing off the recent low, but as long as it remains below 20 on a monthly close, its just a pullback and not a major correction.
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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