We have added a new market entry/exit timing model to our arsenal, namely the SA Reserve Bank Leading Composite Economic Indicator investment timing model. This is our most complex timing model to date and utilises 12 pieces of leading economic indicators to guage the current economic cycle, such as manufacturing data, confidence surveys, commodity prices, M1 money supply, residential building plans passed etc.
The market timing strategy we developed around this SARB published indicator performed well on our standard 31 year back-test when compared to other strategies we have covered, whilst being vested in the JSE only 58% of the time.
The Reserve Bank model forms the final cog in our flagship PowerStocks SUPERMODEL, which is a market entry/exit timing system (patent pending) that combines the use of the Repo Rate Model, the Trendex Model and the Reserve Bank model to produce over 105,500% growth in the last 31 years and in so doing (1) never get caught in a bear market (2) catch the beginning of every bull market, (3) never suffer a loss during an investment period and (4) never suffer a drawdown of more than 15%.
The Reserve Bank Model indicators will now be published on the Weekly JSE Pulse Page. SUPERMODEL timing signal services will commence 10 July 2009 for PowerStocks Subscribers only.