The speed has continued to drop (since we first indicated this on March 12th) and is now at 62%. This is not a healthy speed. If it continues to drop and especially approach the 40% level, it’ll be time to pull off the road and hide under the covers. We'll keep a close eye on the speed and post new blog notes to keep you up-to-date.
When the speed is more than 40% there are plenty of buyable sectors (and consequently ETFs and funds). But when the speed is low and especially when it approaches the dangerous 40% level it is time to watch out and be financially ultra-conservative.
The Tactical Diversity Speedometer provides a quick and powerful way to see the current risk in the markets. The Speedometer shows the percentage of Sectors currently passing our buying considerations and thus is a direct measure of the health and robustness of the market.
We monitor the speed of the Tactical Diversity Speedometer daily and if we see it picking up or dropping off sharply we will post a new update to this blog.
Please note that the Tactical Diversity Speedometer is a proprietary development of 401k Maximizer and is provided to our subscribers and the readers of this blog free of charge for your financial information and advantage.