The primary reason we run our model on Weekly and Monthly is to distinguish short-term moves from long-term. For those who are new subscribers, our models are highly fractal. They were originally developed from watching mutual funds and the S&P 500 index move since 1927! It was then observed that the very same patterns which appeared would occur over and over again through time.
The analysis was confirmed by Nobel Laureates and the finest financial minds in the world.
Short-term we may be at a risk of a correction. However, longer-term, this is not a change in trend. It would be short-lived at best. The definition we have developed to distinguish between a bear market and a bull market is when we see a monthly reversal arrow in the Wealth Preserver. The weekly Wealth Maximizer denotes a sustained trend for a few weeks or months. But unless you break through the Monthly Level (Wealth Preserver), you have no change the broader bull or bear market trend.
Opinion means absolutely nothing!
The numbers are the numbers and the markets will reveal the trend. That is always the key.
Here is the Monthly Gold chart below from 2009 through the end of 2013.
We took the Wealth Preservers bullish arrow in 2009 and rode it through November 2011. We then received a Bearish reversal and closed out massive gains. This signal confirmed that the gold bull market made a major high and correction on time no matter how loud the gold promoters sang. Then, while the media and gold bugs were telling everyone gold was going to $5000 an ounce leading most like the "Pied Piper", our subscribers were out protecting their profits, or buying inverse gold funds making even more money on the decline.
S&P 500 Index
More than 90% of securities will rise and fall with the S&P 500. More than 87% of mutual funds and ETF's underperform the S&P 500 Index in every rolling 10 year month to month period since 1950!
That means that the investments within your 401k, IRA, or whatever account will likely underperform. Why? Because they correlate so highly with the S&P 500 Index that when it goes down, so do most of your accounts.
But, they don't have to go down. You don't have to lose years of your financial life trying to recover.
Take a look at our Wealth Preserver chart below for the S&P 500 Index. What you notice is that you could have avoided the majority of both bear markets . . . and as a subscriber you did. You would have preserved all your growth under green arrows when the red reversal arrow arrived. All you would have done is move your retirement out of your equity fund into a money market fund. Then reentered equity funds again when the green bullish reversal arrow appeared again. Simple.
So, how long did it take you to recover your 2008 losses? Can you afford the years to recover when it happens again?
This is WHY we use definitive time-tested quantitative models that live and breathe with the markets.
Because the majority of people will not accept that principle and will cling to their old fundamental theories like those who refused to believe the world was round rather than flat, there will always be a reservoir of people to trade against, always.
They have to pay their dues before they can graduate to the next level.
Something Is Terribly Wrong
Face it. You can feel it.
You know something is wrong, but you cannot put your finger on just what it is.
And if you are like me, you have no clue when all your wealth is going to come crashing down on you!
Well, fortunately I don't have to worry and neither do our investors. The Wealth Preserver tells us precisely when to exit and preserve what we have accumulated. Unlike those poor retirees who had to find jobs again after the 2008 crash, our subscribers didn't.
YES . . . The stock market will crash.
When? Who knows . . . but it is coming soon.
Hundreds of millions of investors worldwide will participate and be in severe financial pain for themselves and their loved ones.
The real option is that you do not have to participate in that crash along with the pain and suffering it delivers. Your participation and financial devastation are both optional!
To learn the full historical research, how it works, and how you will be protected immediately, just watch the free video below:
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Livio S. Nespoli has been a broker, registered investment advisor, and financial publisher since 1985.