Investment Environment Rating

Rating as of April 6, 2018: 7.0

Our Investment Environment Rating (“IER”) is based, primarily, on the net reading on our proprietary Tactical Asset & Sector Allocation Model (and associated Buy-Sell Index), which is derived from the readings on numerous leading economic and stock market trading indicators. However, other factors, such as the readings on our Sector Performance Index and Market Leaders Index are also analyzed to determine the value of our IER.

  • Values for our IER range from 0 (the lowest possible value) to 10 (the highest possible value).
  • Values that are greater than 5 indicate that the overall investment environment is favorable, according to the readings on our models, and that investors should therefore allocate a large percentage of their financial market assets to equity securities.
  • Values that are less than 5 indicate that the overall investment environment is unfavorable and that investors therefore should allocate a small percentage of their assets to equities.
  • A reading of 5 on our IER indicates that the investment environment is neutral, and that stock prices, in general, will trade in a volatile sideways range for several months.