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I used to subscribe to Hussman Econometrics. He does good work in that
area and Nelson Freeburg has simplified and adapted some of his ideas. I
use his Hussman model and his Pentad model (derived from work of Ned Davis)
to mimic Hussman's idea of "market climate" ie times when it is better or
worse to invest, hold or hedge. The Hussman model has to do with interest
rates and inflation, the Pentad model is market momentum, taking 5
inter-related markets into account. Hussman has incorporated this model
into his work, realizing after 1995 that markets can go far beyond what
econometric models would consider "fair value" or even "overvalued" simply
based on momentum. This model filters out the risk of being underinvested
at these times. This is all long-term investing. Freeburg also has
short-term models, which I don't know much about.
BTW, you don't have to buy some of his systems. If you have back issues
of Stocks and Commodities, there were several systems by Dennis Myers
published there that Freeburg has done, then there was an interview with
Freeburg himself in which he gave the formulas for the Hussman model, also
his Pathfinder currency model, and others.
David Cicia
At 09:37 PM 2/12/98 EST, Frank990@xxxxxxx wrote:
>Nelson Freeburg gave a short talk at the Cycles / MASC meeting in
>Orange County (CA) in Nov.1997. He was one of the six speakers .
>
>He talked about his various models Pentad , Vega etc. most of them
>timing models for the market.
>He talks about turning $ 10,000 to $ 107,000,000 (no typo) in
>30 years (I think it is hypothetical/simulation).
>
>But to learn about the model, I will have to buy maybe 5 older issues
>of his publication. (aprrox. 40 each ) .
>Should I bite or not ?
>
>He also recommended Hussman Econometrics as a good newsletter.
>Over the years , I have heard of Hussman Econometrics, but never
>pursued the subject. It shows up in Hulbert's once in a while.
>Any opinions on Freeburg or Hussman will be appreciated.
>
>Francois
>
>
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