On October 25th 1999 the Model issued a Sell signal.
Subscribers were advised that the markets were approaching a point where
conditions were too dangerous to remain in stocks. The Model was indicating
that the erosion of the underpinnings of the market were such that a
significant sell-off could happen at practically any time requiring little in
the way of a catalyst. It was indicating that to remain invested in the stock
market was simply gambling…….and that is NOT what good investment is about.
At that time Jim advised our clients to sell stocks and to
purchase an alternate investment that would be safe and would continue to grow
in those changing conditions. As of December 31st 2000, the alternate
investment had grown by over 21%. During that same period the Dow and S&P
were up slightly and the Nasdaq was down approximately 50% from its high of
earlier in the year. This advice has not only been very profitable but has
again proven Jim’s doctrine of always protecting capital and never taking any
chance that may result in its loss. These same investments will explode in
value in the event of a market collapse and still offer very little risk.
"I'm grateful for signing up with your service and I
enjoy listening to Jim's audio updates. I'm much more cautious in my investing
approach and your recommendations have saved and conserved my investments.
Because I signed up with your service after the March 2000 NASDAQ crash I've
"only" lost 20% from the March high's. But I've gained 14% so far
through investments as recommended by your service and short funds that I went
into. Had I stayed in stocks, I would be down more than 50%."
· H.G., Colorado Nov 8, 2000 _________________________________________________________________________________
The Sell signal warned our subscribers about the coming
troubles in the markets.
We are currently awaiting the Model’s next signal. It could be a new Buy
signal that will indicate that it is safe to go into the stock market again. It
could be confirmation that the markets are now in a bear market that will be
for an extended period of time. What is a more likely scenario, is that the
Model will issue a signal that it has reached a point called ‘Critical Mass’.
If and when the Model reaches that point it will be indicating that a stock
market crash is imminent. Although the Model has issued 4 Sell signals and 1
Warning since 1982, it has only reached critical mass on one other occasion.
That was 41 days prior to the 1987 crash.