The best defense is a good offense

In general, humans are accustomed to apply gained experience to help forecast the future. The current bull market has lasted about 7 years. Some might conclude that the bull will last, and the Fed will continue to help if needed. If you are in the bullish group, do you have any proven defensive measures if the bullish projection does not materialize?

S&P 500’s return in 2015 was nearly 0% and by the first week of 2016, the return was down by 6%.   How do you know the risk in the market is not increasing to the level of 2000 or 2009? These two major corrections nearly wiped about 50% of S&P 500 value. It takes about 7 years for a major crash to bounce back to its starting level. It is very likely that none of us would like our 401k or other portfolios to go through a similar event.

With the proprietary indicator, Traffic Light, Crystal Clear Indicator can provide an un-biased view on whether the characteristics of 2000 and 2009 events are emerging and also indicate potential subsequent entry points. In investing, the best defense is a good offense.