BFI Advisors employs three indicators. The first two are based on behavioral biases. One is a short-term and the other is a long-term indicator. The short-term indicators indicate volatility will continue and to maintain any hedge you have opened for now. However, more importantly, the long-term indicators indicate to stay long. That we are not in a double dip recession nor another financial crisis.
The third indicator is a hybrid indicator exploiting agent-based modeling and behavioral finance. Our agent-based indicator indicates whether a market is under or overvalued. Surprisingly, Europe and the US are both undervalued which corroborates the long-term behavioral indicator.
Given the model results we are not selling here, but will look for an opportunity to buy in the near term.
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