Primary Market Model
Our Primary Market Model is a proprietary rules-based method to determine the amount of exposure to the stock market our portfolios should have and if our model portfolio should be hedged. It not only signals when to be in the market, but also how much to be invested in the market.
First, our Primary Market Model takes several indicators, including a few well-known indicators but also less known indicators, and puts them into several categories. It then determines how bullish or bearish each category is. The overall signal is an average of the categories signals weighted toward those with more importance.
This strategy is one that has consistantly outperformed the market by a significant margin while having much less risk, as it has been earning interest in risk-free treasury-bills for a considerable amount of time. Though we know that our strategy will not beat the market every year, We think that it is better than a buy and hold strategy because of the risk/return characteristics of the strategy; in the past this strategy's worst peak to trough loss was less than half of the loss of the S&P. This means that there is less risk of having lost money over a several year period. This strategy is updated monthly on our website and in our free strategy update.
You can gain access to our proprietary Primary Market Model by creating a free account.