The Prism Daily ~ VIX Drops, Could Stocks Ditto?

The Prism Daily
Your ‘One-A-Day’ financial news-tritional supplement, including trace elements of economic analysis that every healthy investor needs. Addresses a wide variety of monetary afflictions, from vacillation to impecunity. Specially formulated to go down easy! WARNING: Side effects may include elevated cognition and bouts of epiphany. If symptoms persist, unplug cable TV.

Prism Precis:  VIX Volatility Index Forecasting Stock Market Drop

Today’s Market MRI: What Happened The Last Two Times VIX Closed Below 15%?

ZeroHedge Reports:  “Following the two times that VIX first closed below 15%, the S&P 500 has suffered from a 5.25% and 7.75% plunge in the following two months…”

Prism Responds:  The intelligent, proactive investor would contact all those professionals who manage their money — financial planners, 401k managers, etc. — and tell them to get their money into bonds. As pathetic as bond returns may be, and even if the bond bubble is slowly popping (as it appears it may be already), it probably won’t let go as quickly as stocks could. If there is no stock market drop and it’s all a false alarm, no harm done. Your other choice is to do nothing and pray that your net worth doesn’t droop 5%-8%.

Prism Solution: The idea of doing nothing makes Dave and Gordon wince. Even writing those words is cringe-worthy. Every day we’re in the markets, working hard to grow our clients’ net worth. Overcoming a 5%-8% equity droop is just an engineering job. When your porch sags, you call a contractor to jack it back up. When your equity sags, you call Prism Solutions.

Prism Presidential Package: For our part, we can help you grow some money at rates with the potential to DOUBLE your money in about 18 months, getting you far ahead of the coming Big Inflation. You can get started with just a $2,500 minimum account and your first billing period is FREE. Click here for details.

Prism Profit Engineering Report: for July 2012 | download here (PDF)
Our Conservative, Moderate and Aggressive strategies produced respective client returns of 4.9%, 6.5% and 9.3%, projecting annualized growth of 58.8%, 78.0% and 111.6%. The average for all three was 79.0%. It would take 74 years for a 1-year bank paying 1.1% to match us. We mention this in passing for those of you who intend to live another 74 years.

And May All Your Investments Be Profitable,

David Taylor and Gordon Philips,
Directors of

‘Better Investing Through Science’

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