Getting the odds on your side
Investing in the stock market is one of the best ways to build wealth.
That's why Private Investors are dipping their toes into the stock market.
The Private Investor - becomes - The Emotional Investor
We are hardwired to seek out predators and react to warning signals. While this innate behavior may have helped keep our ancestors alive, it also makes it almost impossible to make good investment decisions. Few things make us as emotional as the prospect of losing money. That’s why investing is a continual struggle between logic and emotion.
Panic selling is common in stock market dips - because few know the answer the most fundamental question in equity investment:
"Is now a good time to own stocks - or not?"
The RISK INDICATOR App is your guide to avoid emotional investing
The App is designed to indicate periods with very likely positive stock market returns
- and periods with very likely negative stock market returns. Laying the foundation for more rational investment decision making versus emotional - helping you build wealth.
The RISK INDICATOR's “Stock Market Safety Level” display a safety level between -100 and +100. Negative or Positive is pivotal - the level merely indicates distance from turning point and can change rapidly due to market stress.
RISK INDICATOR's quant algorithm is an objective and mathematical model based on macro-economic and financial market stress data.
In the App - Strategy displays the outcome of acting 100% upon the App's Stock Market Safety Level - being in stocks in Green (positive safety level) and out of stocks in Red (negative safety level).
- opposed to the Benchmark being in stocks all the time.
In some periods Benchmark outperform the Strategy in terms of absolute return - however accompanied of much higher risk (Drawdowns). Research shows that Drawdowns exceeding -10% for many Private Investors is intolerable and make them leave the stock market in large numbers creating a new problem - when to return?
In the App - Drawdowns displays the Strategy outperforming the Benchmark in terms of drawdown reduction.
Stock Market Drawdown Statistics
The RISK INDICATOR is a tool for investors in equity related securities (long) - Individual Stocks, Mutual Funds and ETF's - products that suffers just as much as equity indexes in "Bear Markets".
(Having a “long” position in a security means that you own the security).
The running cost of having the App available to you - is a microscopic fraction of the potential gain on your investment and wealth.