Zweig's model says Buy

Monday, Jan 14 2019 by

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.

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?

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.)

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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...

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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.)

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mmarkkj777 14th Jan 3 of 4

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 :-) ).

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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

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