Our Equity Risk Meter essentially measures how bullish or bearish we are towards the US Markets. The higher the reading the less risk there is in the market and the lower it goes the more risk there is.
Right now for instance the meter is reading 12.5%, which is very bearish. As you can see we have been bearish for some time now and very bearish since mid June, enabling us to avoid almost all of the downturn in the stock market. When the meter starts to climb we become more and more bullish and look towards the longside. For now we are essentially on the sidelines sitting in cash.
We will be posting our risk meter for US equities each week. If you would like to follow it you can either come to the site each week or simply subscribe to our RSS feed. Using RSS you will be able to either receive our posts as an e-mail or in your RSS reader.
The Macro Trader