Genesis of VIXEK™

Current global financial crisis has touched everyone. Sub-prime mortgage market may have been the epicenter of this crisis, but its impact has been much more widespread. It affected everyone who had any investment in the stock market.

Stages of VIXEK™ Development

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11 Yr Chart

In addition to active stock market investors, a large number of passive and “unbeknownst” investors who had their assets in pension and retirement plans have also been hurt by this crisis.

What’s even worse is that many of the investors stayed in the market long enough to see it go down, panicked and got out just before it hit bottom, and have thus not benefited from its recent recovery.

Tomes have been written to explain why it happened.  And some of them may even be right.  However, most of these experts are the same ones who were steering the ship into and through this wreck . 

Having been through this painful experience once earlier during the decade - the rise and fall of the tech bubble – and seeing hard earned savings evaporate at a stunning rate, led to the following observations about stock investing:

Oak Tree

      1. Market pundits and gurus come in pairs - for every bull, there's a bear.
      2. Effectiveness of an investment model is un-correlated with its sophistication and IQ of people behind the model.
      3. Timing the market is akin to catching a falling knife.  Knowing when to buy and, more importantly, when to sell makes all the difference to one’s portfolio.
      4. A company’s “fundamentals” may be the basis of its stock value, behavior of market movers (mutual funds, hedge funds, institutional investors) outshadows most thorough and rational analysis of its fundamentals.
      5. Keeping one’s own emotions out of stock investing is sage advice.  Knowing the market’s emotions - its animal spirits - is invaluable.

All this was distilled to create an indicator to gauge “emotional kinetics” of the market.

Thus was born VIXEK. WeatherVane for Smart Investments.

Formalized VIXEK Trial & Success Observation, Trial & Error Feel the Pain