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Strategies & Market Trends : Value Line Investment Survey
VALU 36.66+0.1%Oct 31 9:30 AM EST

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To: EL KABONG!!! who wrote (178)1/28/2008 10:49:09 AM
From: OldAIMGuy  Read Replies (1) of 219
 
Hi EK, Re: Value Line Appreciation Potential............

This week the V/L AP value rose again to 75%. Using the method described, this equates to the level of cash needed to back up an individual stock investment to be only 25%, the lowest since we started this new indicator.


Note how the indexes seem to be bottoming in the last week while the V-Wave is showing lower risk. As we have more data, we can do some statistical analysis on the high and low risk areas. My best guess is that anything above 50% on the graph is going to be considered a high risk market and anything below 30% is going to be a relatively low risk environment for investors.

I added a note here in the graph that for ETFs and other diversified investments one can reduce the cash level by dividing the V-Wave number by 1.5. That would give us a cash level of just 17% this week for ETFs.

Best regards, Tom
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