The Model for US equities remains fully Green.
From the Trading Room. After 25+ years of working with market trend models, we often return to the simple truth that “less is more.”
With just a handful of market data series as inputs, the KP Trend Model generates about six signals every year. These invite us to modify our market exposure, and, frankly, about two of the six signals are usually not very helpful. However, over time, the other four signals have been very powerful: they have shown themselves capable of turning a noisy, scary, index fund investment into something much more civilized – a long-term investment in the stock market, with much less volatility and (usually) higher returns as well. Much higher Sharpe Ratios.
There will always be a long list of “yes, but” comments from the sidelines, but the Model just keeps chugging along. Right now it is fully positive.
