Frequently Asked Questions

Dr K Market Direction Model
I prefer to wait for a trending market to use the Market Direction Model. Rebalancing/decay works to one's advantage in trending markets.

This seems to indicate that you have some special indicator that tells you when we have a "truly trending market." Arguably, the market has not had a clean trend pretty much all year, yet wealth we manage for individuals is up 46% after fees year-to-date as of the end of September 2011. If you think you can time the timers, so to speak, why would you need to subscribe to VoSI?

By definition, if we are up year-to-date in the wealth we manage for individuals, then we have in fact found ETFs that represent trending situations whether that would be the indexes on the downside, or gold or silver on the upside. Thus the problem is more one of finding that which is trending when it begins to trend, and such things generally show themselves when one least expects it. Also, the length of the trend does not have to be pre-determined. It can be one month like August, or one week in late September, and this means that it is impossible to know when you are in an "all clear" environment ahead of the fact.

Published: Nov 1 2011