Zweig's model says Buy

Monday, Jan 14 2019 by
8

The 4% model went into bull territory on Friday 11th January 2019 so with the high interest rates, Zweig’s Super Model for January will suggest that you should be 65% invested.

http://investstrat.com/4percent.html

There are things I dislike about the current rally which I suggest you think about first.
It was machine trading on Boxing Day that started this rally. The reasons why the market fell have not gone away – trade dispute with China, recession on the horizon. Look at the results of US retail over Christmas. Debt in the US economy has sky rocketed and Trump has not even started his wall yet. The Fed seems to be more dovish but the last statement was two more rises this year. Will they be March and June or June and December or not at all?

http://investstrat.com/countryvalue.html

The stock leaders of the last rally all fell which usually spells trouble. Some have recovered ground which confuses the picture.

As for investing in the UK - how bad are the economic effects of Brexit going to be and how long will they last?

(This post is a courtesy for those that took note of my post when the model went bearish. I have no intention of posting changes in the model again.)

Unlock this article instantly by logging into your account

Don’t have an account? Register for free and we’ll get out your way

Disclaimer:  

As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. The author may own shares in any companies discussed, all opinions are his/her own & are general/impersonal. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.


Do you like this Post?
Yes
No
8 thumbs up
0 thumbs down
Share this post with friends




4 Posts on this Thread show/hide all

Jack Corsellis 14th Jan 1 of 4

Give examples of the stock leaders of the last rally that have now all fallen...

| Link | Share
mgallear 14th Jan 2 of 4

I was talking about the FAANG stocks - Facebook, Amazon, Apple, Netflix and Google/Alphabet. They were all down a lot on Christmas Eve. Maybe there was a major fall and we are in a new rally and new leaders will emerge but it felt more like a steep dip to me.

(I know they are leaders of the US market but if that crashes you will not be able to hide in British or even in Australian shares.)

| Link | Share | 1 reply
mmarkkj777 14th Jan 3 of 4
1

In reply to post #436268

I agree,

You could also add Nvidia, and for UK Aim investors Fevertree, Blue Prism, Asos, and many more.

However, it seems like these previous leaders are regrouping and starting to gain momentum again. I can't see a new wave of leaders yet (but if someone can point some out, i'd be interested :-) ).

| Link | Share
Nursemaid 14th Jan 4 of 4

I will probably get slated for this but eh ho :-) I have started to get into The Independent Investment Trust (IIT) as it has now been beaten down massively, I am buying in for the long-term Growth as they hold a lot of the companies I like but was too nervous to buy for myself due to over-valuations before the "correction". Some great companies in the Trust..Fevertree,OTB,Herald,Ashstead etc, etc.

ATB, Nursemaid

| Link | Share

Please subscribe to submit a comment





Stock Picking Tutorial Centre



Let’s get you setup so you get the most out of our service
Done, Let's add some stocks
Brilliant - You've created a folio! Now let's add some stocks to it.

  • Apple (AAPL)

  • Shell (RDSA)

  • Twitter (TWTR)

  • Volkswagon AG (VOK)

  • McDonalds (MCD)

  • Vodafone (VOD)

  • Barratt Homes (BDEV)

  • Microsoft (MSFT)

  • Tesco (TSCO)
Save and show me my analysis