The Correction Protection Model is our proprietary defensive model for the S&P 500. CPM’s primary objective is to protect investor assets during stock market corrections but to otherwise remain invested, taking advantage of equity prices’ historical propensity to move higher over time. CPM is objective, data-driven, and independent of the day-to-day price fluctuations in the major US stock indexes. CPM is binary: it is either Risk On or Risk Off. This wealth preservation tool was initially developed following the 2008 Financial Crisis to protect investors from another similar market collapse.
John Kosar discussed and explained the Correction Protection Model in his February 16th, 2022 interview with Investors Business Daily (IBD). Click the graphic below to view it.
The Asbury 6, which is updated daily in our Research Center, is a combination of six diverse market metrics that we combined to look beyond the day-to-day noise of the stock market to determine its actual health — in much the same way that a doctor initially checks the patient’s vital signs during an office visit. We view the “A6” as a lie detector test for the market that helps investors to identify real, sustainable market advances or declines from computer-driven traps for investors.
The flow of money is one of the only metrics we know of that actually leads price movement. The SEAF Model “follows the money” to determine where investor assets are going, and where they are coming from, in US stock market sectors. This model tracks the assets invested in 11 Sector ETFs (which together comprise the S&P 500), in 3 different time frames, to determine the best opportunities to capture outright and relative performance in the sector space.
John Kosar discussed and explained the SEAF Model in his February 16th, 2022 interview with Investors Business Daily (IBD). Click the graphic below to view it.
This model identifies which specific areas of the US financial landscape are the best performers in 11 different categories that encompass both the stock and bond markets. These relative comparisons, including stocks vs. bonds, large cap vs. small cap, growth vs. value, US vs. emerging markets, and government vs. corporate bonds, identify which parts of the market are outperforming or underperforming in three different time frames.
This model helps investors who want to diversify a portion of their equities exposure away from the US to make objective, data-driven decisions. It identifies which of 25 different global equity markets, which together represent the world, are outperforming or underperforming the S&P 500 in three different time frames.
This model identifies Sector, Industry Group, and Commodity ETFs that identify exceptional buying opportunities based on four criteria: trend, relative performance, investor asset flows, and risk versus reward. These ideas are intended to be potential short-term trading opportunities rather than longer-term investments.
Disclosure/Disclaimer: The information on this website is provided solely for informational purposes and is not intended to be an offer to sell securities or a solicitation of an offer to buy securities. The strategies employed in managing this and other model portfolios may involve algorithmic techniques such as trend analysis, relative strength, moving averages, various momentum, and related strategies. There is no assurance that these strategies and techniques will yield positive outcomes or prevent losses. Past performance as indicated from historical back-testing is hypothetical in nature and does not involve actual client portfolios, does not consider cash flows or market events, and is not predictive of future performance. The model is managed by contemporaneously recording hypothetical trades. Such trades are not live trades and are not influenced by emotional or subjective reactions to extraneous market, economic, political and related factors. The performance for such model(s) is derived from utilizing a variety of technical trading strategies and techniques. Technical trading models are mathematically driven based upon historical data and trends of domestic and foreign market trading activity, including various industry and sector trading statistics within such markets. Technical trading models utilize mathematical algorithms to attempt to identify when markets are likely to increase or decrease and identify appropriate entry and exit points. The primary risk of technical trading models is that historical trends and past performance cannot predict future trends and there is no assurance that the mathematical algorithms employed are designed properly, new data is accurately incorporated, or the software can accurately predict future market, industry, and sector performance. Asbury Research LLC does not and cannot provide any assurance that an investment in the model portfolios will yield profitable outcomes. The risk of loss trading in financial assets can be substantial, and different types of investment vehicles, including ETFs, involve varying degrees of risk. Therefore, you should carefully consider whether such trading is suitable for you in light of your financial condition. An investor’s personal goals, risk tolerance, income needs, portfolio size, asset allocation and securities preferences, income tax, and estate planning strategy should be reviewed and taken into consideration before committing to a specific investment program. Please consult with your financial advisor to discuss the appropriateness of any strategy prior to investing. All investments involve risk. Principal is subject to loss, and actual returns may be negative. Returns are not guaranteed in any way and may vary widely from year to year.