Power Investor Blog

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 in 2002 but was completed in 2004. He did the research on his own time and has been using the system since 2006.   Is 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.

This site is for education and research. It is not an investment advisory service. Readers and users are encouraged to do their own research and analysis.

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

Please note that all information on this site or provided by Investors Alliance is for education and research.  Nothing posted on this site or provided by Investors Alliance should be construed as investment advisory services or recommendations. We do not provide investment advisory services. Readers, members and the public are encouraged to do their own homework and research. The stock analysis software is for research and education. www.powerinvestor.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

Please note that all information on this site or provided by Investors Alliance is for education and research.  Nothing posted on this site or provided by Investors Alliance should be construed as investment advisory services or recommendations. We do not provide investment advisory services. Readers, members and the public are encouraged to do their own homework and research. The stock analysis software is for research and education. www.powerinvestor.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.

Hedge fund manager John Paulson has sold some of his gold holdings using the GLD exchange traded fund.  This has been one of his only decent investments this year.  His hedge funds are down big for 2011.   Other hedge fund amangers like Soros, Touradji and Paul Tudor Jones have added to their gold positions.  For the record, we do not like the GOLD gold ETF.  There are better choices.

Meanwhile; our Gold Model is mainly in cash but is up +30.2% year to date.

www.powerinvestor.com

www.gold-ews.com

The markets are down due to Italy and Greece plus the rest of Europe.  The EU idea for putting different countries with different cultures and politicial systems in on strong currency was economic suicide. 

The Euro will probably go by the wayside or will become a the new German DM.  Lesser developed countries like Greece, Portugal, Ireland and other European nations cannot compete or export with a strong currency.   They become welfare states. In addition, they should close down the EU in Brussels and send the bureaucrats home.  Things in the United States are not any better.  This Senate Super Committee is not going to make any hard budget decisions to cut any thing substantial.

We doubt any bailout of Greece is going to hold.  The level of absurdity going on is off the charts.   Greece and less industrially developed countries like Portugal and maybe Spain should never have been part of the Euro.  You cannot have poorer countries with an expensive currency.  Any businesses or industries in those countries are incapable of competing with a pricey currency.  Greece having their old Drachma also restrained politicians in Greece from spending and looting.