This model has successfully produced
exceptional returns while taking lower risks than the
markets both in bull and bear markets.
This
long-term model allocates assets on a global basis between
equities, fixed income securities, commodities, real estate, and
currencies. The model further drills down to sub-asset
classes, sectors, and sub-sectors.
Allocations are based on identifying
the changes early using the ZYX
Change Method.

A change means a new risk reward ratio.
The model
starts an allocation to an asset class or a sub asset class
when the risk is small, and the reward is high and
increasing. Allocation is increased as there is more
confirmation of the trend and the thesis. The model reduces
the allocation
as the risk increases even if the rewards are increasing.
The model removes the allocation to the asset class as the risk goes
higher even if the rewards are going higher.
Risk Control
The model gives precedence to risk control over potential
rewards. The model is designed to maximize risk
adjusted returns over a long period of time. The model
is not designed to maximize absolute returns over short
periods of time.
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Searching the globe for non correlated assets, i.e.,
the assets that do not go up and down together.
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Making money not only when markets go up but
also by making money when the markets go down.
-
Diversifying strategies based on different time
frames, i.e., by diversifying between very long-term,
long-term, medium-term and short-term horizons.
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Buying assets when they are cheap.
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Selling assets when they are expensive.
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Getting ahead of the inflection macro points,
i.e., using leading indicators to make decisions as
opposed to using lagging indicators.
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Not being afraid of being in cash.
-
Being content to miss high risk rallies in the
markets.
-
Focusing on the risk adjusted returns over a
long period of time.
-
Being driven by the data and not getting stuck
in certain opinions.
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COMPREHENSIVE 360°GLOBAL ANALYSIS |
Our proprietary algorithms generate actionable signals based on
the unique ZYX Change Method after analyzing
- Economic data from 23 countries
- Macro trends
- All major currencies
- All major commodities
- Geo political considerations
- Technology/Science developments
- All major industries
- 3000 U.S. stocks
- 1000 International stocks
- Trends in bonds all over the globe

CHECK
OUT PERFORMANCE OF THE MODEL SINCE 2007
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The undeniable truth about the
markets is that they constantly change.
The problem with the conventional
models is that they may work under certain conditions, but
when the conditions change, they stop working.
ZYX Global
Multi Asset Allocation Model has overcome the conventional
limitation as the model is designed to automatically
change as the market conditions change.
We searched the globe and
started
with three sets of inputs -- a large number of diverse
conventional timing techniques already
available to sophisticated
large institutions and fundamental as well as technical data
conventionally used by successful investors.
The focus
of our research was to first narrow the large universe
of such techniques and factors that influence the market to
a handful of factors that have the most predictive
abilities; and then build an adaptive timing model using the
selected factors.
The actual real life results show that we succeeded in
developing a model that automatically changes with the
market conditions to produce high returns while
minimizing risks.
Adaptive
Model
This is
an adaptive model based on eight distinct inter-market,
macro-economic, technical, and fund flow inputs.
The model
makes two
adaptations in near real time to the eight inputs as
new data becomes available.
First, the
weight of an input is low if the data has been choppy or
directionless. However, if the data offers strong direction,
regardless of the magnitude, the weight of the input
increases. Second, the weight of an input changes based on
its correlation with the price movement of the underlying
market.
Eight Inputs
At present the following are the key ingredients of
our timing model.
1. Aggressiveness of fund flows
2. Leading global economic indicators
3. Commodity price movements
4. Relationship between currencies
5. Risk appetite as demonstrated by the relationship between
the price movements of the assets deemed safe vs. assets
considered speculative.
6. Price action of the markets at key technical
support/resistance levels
7. Price action of the markets as various classical
technical patterns become apparent
8. Changes in internals of the markets as the prices push through or
fail at key support/resistance levels
Allocation to Cash
The model's approach to cash allocation is unique. In
addition to taking into account risks, the model also takes
into account the probability of better opportunities coming
along in the near future. After all investors who are fully
invested can not easily take advantage of the new better
opportunities.

The model strives for no cash when the
probability of significant new and better opportunities
becoming available in the near future is less than 60%, and
it can find assets anywhere in the globe with low risk.
If
the probability of significant new and better opportunities goes over 60%
or low risk opportunities are not available, the
model starts cash allocation. The amount of the cash
increases parabolically as the probability of new better
opportunities goes higher or the risks increase.
FREE TRIAL TO THE ZYX GLOBAL MULTI ASSET ALLOCATION ALERT
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Now you can easily bullet proof your portfolio using
only ETFs with the unique and innovative ZYX Global
Asset Allocation Model.
The 2008 financial crises showed that conventional
wisdom of protecting a portfolio through simple
diversification does not always work --
stocks went down, bonds went down, real estate went
down, commodities went down, and even gold went down.
Even
in the biggest financial crises in 2008 since the great
depression, ZYX Global Asset allocation Model produced a
return of 42.90%
compared to S&P
500 return for the period of
-36.10%
while taking 50% less risk.
In other words, the model produced great returns
when most conventional strategies were losing money by
the boatload!
We offer two variants of the
Global Allocation Model: a lower risk model that
attempts to take 50% of the risk of the markets and a
low risk model that attempts to take 85% of the risk of
the markets.
The two variants help investors to easily
customize the model themselves to suit their own risk
tolerance and return requirements by picking and
choosing from the lower risk model and the low risk
model.
In our lower risk model, we
are not shy to hold 100% cash when risks become high or
the probability of better opportunities coming along in
the near future is high. After all cash is king when a
great opportunity arises. Those already fully invested
can not take advantage of the new better opportunities.
Such conservatism may be contrary to
conventional wisdom, but there is no denying the
excellent performance of this model. As shown in the
chart the model has beaten the indexes by a wide margin,
while on the average taking 50% of the composite risk of
fully invested positions.
The model puts risks before rewards and is
content missing high risk rallies.
Lower Risk
Model
Lower risk does not mean not investing in emerging
markets, technology, real estate, or commodities. It
simply means entry at the right price and exiting when
the risks become high. The following asset classes in
which the lower risk model has invested in the past
illustrate the point:
·
Asia Real Estate
·
Brazil
Equities
·
Cash
·
China
Equities
·
Chinese Yuan
·
Copper
·
Crude Oil
·
Emerging
Markets Equities
·
Euro Dollar
·
Europe
Export Equities
·
India
Equities
·
Indonesia
Equities
·
Gold
·
Silver
·
Spain
Equities
·
Taiwan
Equities
·
US 20 Year
Bonds
·
US Financial
Sector Equities
·
US High
Yield Bonds
·
US HMO
Equities
·
US Mega Cap
Equities
·
US Regional
Bank Equities
·
US Retail
Equities
·
US Senior
Bank Loans
·
US Small Cap
Equities
·
US Utilities
Equities
CHECK
OUT PERFORMANCE OF THE MODEL SINCE 2007
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