We are pleased to announce the completion of one of our finest research pieces related to the new Long Term Investment Timing Model dubbed the "Long Bond Yield Curve" (LBYC) Timing Model. This sophisticated yet elegant model utilises the relationship between the average yield on a basket of long-term (10-30 year) government-backed bonds (such as the R157 and R186) and the average yield on a basket of short-term debt instruments such as 3-month treasury T-bills, coupled with prevailing interest rates to offer very infrequent and profitable buy/sell investment signals on the JSE.
A JSE investment strategy using these signals would have returned 12,008% return over the last 26 years by being vested in the JSE 75% of the time with just 5 trades, versus a buy-and-hold strategies' 2,658% return. The strategy successfully avoided every economic recession and its associated JSE bear market for a 4.51x JSE out-performance. In addition minimum holding periods are designed to be at least 36months, offering maximum tax efficient gains for the investor.
The LBYC is a powerful, reliable and accurate forecaster of pending downturns in the SA economic cycle and indeed provides for excellent short-term warnings of major JSE corrections. It is suited for investors seeking to remain vested in the JSE for as long as possible to achieve tax efficient capital gains and to lock onto dividend yield income. The detailed theory and mechanics behind the model remain exclusive to paid-subscribers at the Market Timing main page.