Extras RouteMap: Chart Library

The investment strategies used to predict alternative assets in our Research Universe

 

All charts use the set of our own indices where there are no suitable ones publicly available. For comparability all are shown as total returns, rather than price only. See a sample chart for each investing strategy used in the Extras RouteMap, including the complete simulated record of signals, where appropriate. Check out long-term performance simulation for market timing strategies
  Chart Technical Analysis:- Based on the idea that the trend is your friend, this chart generates Buy & Sell signals using technical analysis. Thus signals depend only on price information available at the time. It relies on analysis of rates of change as well as moving averages. This chart is based on the observation that the psychological effect of a shock takes about a year to wear off, and is based on the Coppock Curve, together with moving average and divergence analysis.
  Key Economic Indicator:- For each asset class a composite economic indicator has been constructed that best explains performance of the asset class. A "Best Guess" as to the likely future direction is generated by our econometric models and attached to the time series so as to indicate the likely future outlook for each asset class. The most suitable time series will also vary depending on the investment perspective under analysis.
  Investment Sentiment: - Nobody gets it always right and nobody gets it always wrong, but there is a tendency for some kinds of investor to out-perform well and others to under-perform. This strategy combines as many such indicators for each market as possible whose track record over the past decade has been proved to be effective. While individual indicators may be erratic, these composite indicators can be excellent predictors of year ahead performance.

Valuation: Current Return after Inflation:- This chart is intended to show the attractiveness of each asset class in real terms after allowing for inflation. It is designed not only to show the current position but also to provide a best guess as to the future trend. This is useful for spotting extremes of over- or under-valuation. It does so by measuring the real yield or real earnings yield after inflation for that asset class or the closest comparable one where direct measurement is not possible. For commodities we use Replacement Cost.
  Valuation: Compared to Closest Rival:- This chart is intended to show the attractiveness of each asset class compared to its closest competitor for investment funds. Where direct measurement is not possible, the closest comparable valuation ratio is used. As this is not possible for commodities we use surveys of industrial confidence as a leading indicator of capacity utilisation.
  Seasonal Trading Patterns:- This chart is designed to exploit short-term trading patterns, and is intended for traders, arbitrage plays over time and to assist long-term investors in fine-tuning entry and exit points. It uses end-month data to illustrate seasonal trading patterns. The chart shows the cumulative performance through the year, based on short, medium and long-term historical records.

 

Market Timeline:- This high magnification chart is designed to study the significance of past events - economic, political, international or market-specific. As this chart is much larger than the screen, scroll bars enable the user to locate any point over the past quarter century to examine market action before and after the chosen event. To enhance magnification,  the financial history is divided into earlier and later periods.

Comparable charts are available for selecting Asset Classes in general and for Foreign Currencies, Government Bonds, Stock Markets and  Investing Styles & Sectors, in particular.

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Next Class

Extra Charts are part of the free international investment seminar. Just follow the classroom signs alongside, either now or come back here later when you have looked at whichever chart types in this section of the library interest you. At the end of each class, there is a sign to the beginning of the Next Class.