Sjug explains the world in five minutes...
Sjug explains the world in five minutes...Goldsmith comment: Last week we told you about the S&A Grail Trader, a new trading service currently available only to Alliance members. Today, we're running an excerpt from another trading service only available to Alliance members. It's called True Wealth Systems, written by our own Steve Sjuggerud.
As you probably know, Steve is our best macroeconomic forecaster. So we teamed him up with one of the best quantitative programmers in the world to develop a proprietary trading system. We've spent hundreds of thousands of dollars and years of man-hours building our own custom analysis software, a back-testing program, and a charting program. And we've been building safe, successful trading systems using these incredible tools.
In short, readers of True Wealth Systems will get the kind of research only the biggest hedge funds have access to.
Alliance members received their first "beta" issue on February 8. We don't want to give away Steve's first pick. But we do have a small excerpt from that issue, which features Steve's thoughts on a few of the most important indicators he's following in TWS. Take a look...
The World in Five Minutes
First off, stocks are in a rip-roaring bull market. You want to stay with this trend...
Check out this chart... For two decades now, sticking with the trend is what works. You see a couple years up, then a couple years down.
Our TWS indicator has worked for decades. We've tested it going back to the 1920s. Green means we're in buy mode, and red is sell mode. Since it works so well, we trade it with leverage – we buy the double-long S&P 500 fund (SSO). It rises nearly 17% a year in buy mode. And we're in buy mode right now.
In this Bernanke Asset Bubble, stocks can and will go much higher than anyone can imagine... So stay on board as long as you can!
Gold's bull trend is intact, too... Stay long gold.
When gold goes crazy, you can make an absolute fortune...
Our TWS gold indicator works fantastically, so we like to trade it with some leverage through a double-long gold fund (DGP). As the chart below shows, the bull markets of the 1970s and 2000s brought home ridiculous gains... Each step on the right axis doubles your money.
The trend is still in place. The bull market in gold is still here. Gold is still a buy.
The bull market is solid in commodities, too... And it's also a bull market you want to be on board for... Once again, each tick mark on the right axis doubles your money...
You don't want to miss a bull market in commodities... Historically, you've made 27% a year when our trend indicator is in buy mode through a double-long commodities fund (DYY). And right now, we're in a bull market in commodities.
Where are the cracks in the armor?
One area of concern is emerging markets...
Emerging markets from India to South Africa have fallen out of buy mode. Inflation is starting to show in India... The inflation rate is over 8%, with food prices rising 17% a year.
After a great run since March 2009, India is now in sell mode.
We can't be certain if it's the start of a new bear market in India, or just a correction. But we don't want to be invested in India right now.
Other emerging markets have held up a bit better, but we're seeing cracks in the armor.
In short... right now, the Bernanke Asset Bubble is in full swing. Let's ride it as long as we can. Stocks, gold, and commodities could rise higher than anyone can imagine...
Good investing,
Steve
Editor's note: True Wealth Systems will be available to the public this spring. Alliance members can access it on our website. Look under the "beta" tab on the left-hand side.