What if the current signal is losing money. Should I move to the money market until the signals start acting better?
NO! No system is perfect in predicting the movement of the stock market but historically our model has been very accurate. In order to benefit from the overall accuracy of our signals, it is important that you act on every signal and not act on your emotions or personal opinions of the market’s direction. However, the final decision is always yours and some clients prefer to move to the money market fund until the next signal should account values drop by 10% or more. Although the model is designed to greatly reduce adverse equity fluctuations, historical results show 1.0 beta equity values can fluctuate as much as 20% from peaks.
