Power Investor Blog

We mentioned to Gold Members that we would be launching Gold Model 2 and the Genetic Modeling system for Gold and Platinum members.   Both systems were developed by Frank Lardino on his free time.  Frank has decided to allow Gold Members to use both tools in 2012 and possibly beyond 2012. 

The new program is on target for release at the end of February.  The program will have new and improved features including candlestick charts.  Real time data is also planned for a later release.  The original Power Investor will continue to be available as well.

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www.gold-ews.com

Since 2007, individual investors have taken $450 billion out of domestic equities.  According to institutional data vendor, Trim Tabs of Santa Rosa, CA, the amount was over $100 billion in 2011.  Trim Tabs said a lot of that money was actually going into savings and checking accounts!  This is really sad because the dollar is losing at least 7% a year due to inflation/devaluation.  People living on fixed incomes are getting crushed by high inflation and low interest rates.  It is estimated that $850 billion has gone into bonds and bond funds since 2007.

The stock market has been sideways for the start of the year. Volume is low and investors have been pulling money out of the market and/or from stock funds.  Many investors have moved to bond funds or other alternatives.

We think 2012 will probably be fairly sideways but it could go either way.  Election years are generally pretty bullish years but the economy is weak and confidence is low.   We do like oil and think oil and oil stocks will do well.  The reason is even though economies worldwide are fairly weak, oil consumption is holding up.  In addition, the dollar keeps losing it’s value which means oil goes higher and usually gold goes up as well.  

The Gold Model 2 was developed by Frank Lardino in 2002 but was completed in 2004. He did the research on his own time and has been using the system since 2006.   Frank decided to make it available to Investors Alliance members who have Gold and Platinum memberships.

The Gold Model 2 has a longer holding period than Gold Model 1.  Gold Model 2 is also a bit more volatile.  The returns for Gold Model 2 are higher.  They were a lot higher in 2011.  We will have more details shortly.  We will place the information for the 3 securities and the returns from 2005 to 2011.

We have a new update for the EWS Models on the Gold-ews.com web site.   The EWS is powered by our internal AI investment software.

Gold and Platinum members can go to our www.Gold-ews.com web site for tonight’s update for The Gold Model.  The Gold Model is up +30.2% year to date versus about a 2% loss for the S&P 500.  The Gold Model is powered by our Power Investor investment software.

www.powerinvestor.com or www.gold-ews.com

The update will be posted shortly to the www.gold-ews.com website for Gold and Platinum members.  Gold prices and stocks have been pulling back.  The model is in cash and money markets right now.  We think gold prices should be fine because the European problem is not going to be fixed in the short term.  We are getting down to the crunch time on Europe.

Many EU states want to monetize the debt aka print money.  Most of the German public is opposed to this because some Germans recall Weimar Germany’s hyperinflation.   Germany was not the only country in Europe or the rest of the world that had hyperinflation and their paper currency wiped out.

We may have a Gold Model update tonight.  The Gold Model is up +30.2% year to date.  The Gold Model is powered by our Power Investor investment software and our Power Tech Pro 64 trading software.  For more information go to www.gold-ews.com

The Gold Model is currently in cash but the Model is up +30.2% year to date.  During the same period, the S&P 500 is down-3.2% and gold is up +21%  The better news is that the Gold Model has been in cash or money markets for about 55 to 60% of the year.  This means users do not have to go through endless market volatility with ups and downs every day in the markets.  You also do not have the ups and downs due to the constant changes in margin requirements that cause gold to be volatile in the past year or two.