Investors Weekly Update: Bonds Over Stocks
Jack Chan | Oct 04, 2015 04:31AM ET
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&P 500 is on major sell signal, ending the major buy signal from early 2012.
The oil sector (OSX) is on a major sell signal since September 2014. Investors should have been out of this sector.
h3 Summary/h3- 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 uninvested 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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