Descriptions & Applications

Please note that there is no limit to the number of Models an investor may select, and most choose a blend of 2-3.

Bull / Bear Model

The Bull / Bear Model is a longer-term, lower-activity model with the strategy to be invested in equities (mostly US) during Bull markets and in fixed income during Bear markets. Activity is limited to two events:

  1. when a new Bull market or new Bear market is signaled.
  2. on a quarterly basis within ongoing Bull and Bear markets.

This model is particularly suitable for situations such as 401(k)’s in which activity is limited
to the quarter-end and is in an environment of a limited or walled-garden of investment choices.
Additionally, while not managed to be ‘tax-sensitive’, it more often than not yields long enough
holding periods to get long-term tax treatment, though this is never guaranteed.
The Bull / Bear Model operates independently of The Volkanator.

Long / Cash Model

The Long / Cash Model is an intermediate term model in which the goal is to be invested ‘Long’ during
all intermediate term up-trends in the U.S. market, and in the safety of cash during all intermediate
term down-trends. Activity takes place when a portfolio is established at the inception of each intermediate
term up-trend or down-trend. Thus, this model is not meant for an environment where activity is constrained by
quarterly ‘activity windows’. This model is suitable for virtually any situation and depends more on the
individual investor’s risk tolerance and situation. The Long / Cash Model is driven by The Volkanator.

Long / Short Model

The Long / Short Model is an intermediate term model whose goal is to be invested ‘Long’ during all
intermediate term up-trends in the U.S. market, and “Short” during all intermediate term down-trends.
Activity takes place when a portfolio is established at the inception of each intermediate term
up-trend or down-trend. This model is suitable for a wide range of investment situations, depending
upon the risk tolerance of the individual. The Long / Short Model is driven by The Volkanator.

Global Asset Classes Model

The Global Asset Classes Model is an intermediate term model with the goal to invest via ETFs
(exchange traded funds) in high-ranked asset classes from around the world . The asset classes
include U.S. equities, non-U.S. equities, bonds, currencies and commodities. Activity is limited to once
per month, when the recommended portfolio is re-selected. This model is suitable for a wide range of investment
situations, depending on the risk tolerance and situation of the individual The Global Asset Classes Model operates independently of The Volkanator.

The Calendar Effects Model

The Calendar Effects Model is a shorter term model with the goal to be invested only during those short
periods during the calendar year that have been shown historically to have a high probability of profit.
There are 14 of these short periods in any given year, totaling just 75 trading days of market exposure
per year. The Calendar Effects Model has historically been a particularly good performer during Bear
markets. Therefore, it can be a wonderful complement to the other portfolios, especially when they may
be out of the market. This portfolio is suitable to almost any type of situation, depending on the individual’s
risk tolerance. The Calendar Effects Model operates independently of The Volkanator.

The Multi Sector Fixed Income Model

The Multi Sector Fixed Income Model is as the name implies, a fixed income model useful for those situations
that require an investment in the fixed income arena, such as trusts and institutional situations as well as
certain individual and family situations. The Multi Sector Model is benchmarked against the Lehman Brothers
Fixed Income exchange traded fund (AGG). The model provides the opportunity, in similar fashion to the equity
focused models, to invest in only the strongest areas of the bond market and also avoid those that are weak.
The Multi Sector Fixed Income Model operates independently of The Volkanator.