How to Use iMarketSignals for Retirement Accounts

A Dynamic Asset Allocation strategy applied to bond- and stock-funds increases returns and reduces risk. During up-market periods more money is allocated to stock funds than bond funds, and conversely during down-market periods more money is allocated to bond funds than stock funds.  The up- and down-market periods come from our MAC-US .

Weekly Data Updates relevant to Retirement Accounts

(i) The MAC-US: If sell-spread falls below zero a down-stockmarket is signaled. Subsequently when buy-spread moves from below to above zero an up-stockmarket is indicated.

7/10/2020: Latest update only available to Bronze members 6/12/2020: The MAC-US model switched back into the markets..

(ii) The Recession Indicators COMP, BCI and FRR2-10:  If a recession is signaled it may be advisable to exit stock market completely. These three recession indicators have different lead times: FRR2-10 an average of 14 months, BCIp an average of 20 weeks, and COMP (as well as BCIg) an average of 10 weeks.

	7/10/2020: Latest update only available to Bronze members 6/12/2020: show=0] Download Update as PDF [/iM] Market Signals Summary: Both MAC-US and the 3-mo Hi-Lo Index have switched back into the market. The bond market model avoids high beta (long) bonds, and the yield curve is steepening. The Gold Coppock remains in gold but the iM-Gold Timer is in cash. The Silver Coppock model is invested in silver. The BCI, the iM-LLI and the iM-Unemployment models all signal a recession warning. The iM-GT Timer, based on Google Search Trends volume switched out of the markets on 3/5/2020. Stock-markets: The MAC-US model switched back into the markets..
	7/9/2020: Latest update only available to Bronze members 6/12/2020: gn=”right”> iM-Weekly Unemployment Monitor There is no improvement in the employment situation, hence no easing of the Covid-19 recession can be identified. Please refer The iM-Weekly Unemployment Monitor
	7/10/2020: Latest update only available to Bronze members 7/3/2020: The Forward Rate Ratio between the 2-year and 10-year U.S. Treasury yields (FRR2-10) is above last week’s level. A description of this indicator can be found here.

(iii) The Bond Value Ratio (BVR): To determine whether to be invested in long-bond funds or short-bond funds.

7/10/2020: To view latest update please log in 6/12/2020: The BVR-model avoids high beta bonds (long-bonds) and also intermediate duration bonds. The Bond Value Ratio is shown in Fig 4 and is near last week’s value.  According to the model, only when BVR turns upward after having been lower than the lower offset-line should one consider long bonds again.

 Monthly Data Updates relevant to Retirement Accounts

(iv) The Unemployment Rate Recession Model:  If a recession is signaled it may be advisable to exit stock market completely.

7/3/2020: To view latest update please log in 6/5/2020: 4> The 6/5/2020 employment report claims 11.1% UER (last month 13.3%) and a total labor force 159,932,000 for mid-June 2020. However, the 7/2/2020 unemployment insurance report shows 31,491,627 persons claiming UI benefits week ending June 20.  Thus 31.5/159.9 = 19.7% (last month 18.9%) UER calculated from the unemployment insurance claims for exactly the same period.

(iv) The TIAA Real Estate Timed Account :   If rolling 1-year return falls below 0% model goes to cash. Subsequently when rolling 1-year return moves above 0% a new investment is made.

7/3/2020: To view latest update please log in 6/5/2020: > The 6/5/2020 employment report claims 11.1% UER (last month 13.3%) and a total labor force 159,932,000 for mid-June 2020. However, the 7/2/2020 unemployment insurance report shows 31,491,627 persons claiming UI benefits week ending June 20.  Thus 31.5/159.9 = 19.7% (last month 18.9%) UER calculated from the unemployment insurance claims for exactly the same period.

Dynamic Asset Allocation Models (monthly)

(vi) Vanguard Systems: Historical performance and current allocations are shown for three systems: 1a, 2a and 3a. The three different systems range from a mix of conservative index funds to moderately aggressive managed Vanguard funds. Each system has three sub-systems with different allocations between bond- and stock-funds (20/80, 30/70 and 40/60). For example, 20/80 signifies a nominal allocation of 20%bonds and 80%stocks during up-market periods, and 80%bonds and 20%stocks during down-stock market periods. The most conservative allocation would be 40/60. Although the models use particular bond funds, it may be advisable to consult the BVR model to determine whether to be invested in long-bond funds or short-bond funds.

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12/7/2018: Performance comparison of the iM Vanguard Systems, read more ....

(vii) Vanguard + TIAA Systems: Historical performance and current allocations are shown for four systems: 1b, 2b, 3b and 4a. The four different systems range from a mix of conservative index funds to moderately aggressive managed Vanguard funds in combination with the TIAA Real Estate Account. Each system has three sub-systems with different allocations between bond- and stock-funds & TIAA Real Estate Account (20/80, 30/70 and 40/60). The most conservative allocation would be 40/60. Although the models use particular bond funds, it may be advisable to consult the BVR model to determine whether to be invested in long-bond funds or short-bond funds.

12/7/2018: Performance comparison of the iM Vanguard Systems combined with TIAA Real Estates timed, read more ....

 iM-News eMail Service

(vii) Friday’s Weekly Update: A ticked box indicates that you will receive Friday’s update email. (You can toggle the tick by clicking on the box.) The email notifies, subject to membership category, any signals that may have been generated, as well as the current nominal allocations for the above models are publicized.