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 a buy signal.
Oil sector is on a major sell signal.
VIX is down and markets are up.
Summary
The long term signal on the broad market is up.
However, the current investing model favors bonds, therefore, investors should continue to overweigh with long bonds or bond ETFs for safety.
The best opportunity will be in the gold sector after the current correction.