The Archi-Meter

Wouldn't it be helpful to know the probability of sharemarket correction at today's valuation?

Sharemarkets are volatile beasts, catching many by surprise when they fall quickly. With the benefit of hindsight, pundits can tell you why the market fell. But how many accurately and consistently call the correction before it happens?

Archimedes Financial Planning has developed a proprietary algoritm that gives the probability - from low to high - of the Australian sharemarket falling by more than 10-15%. Output is The Archi-Meter, a beautiful tool indeed, based on a methodolgy of  Econophysics.

The Archi-Meter, together with other research, is used to inform clients of the risk/reward - when to be agressive, when to be defensive. It was developed after the Global Financail Crisis - our clients want to reduce the probability of being caught by the next GFC.

Observe just prior to the GFC, it rated the probability as High. If only we had The Archi-Meter then!

Observe in 1987, after the sharemarket fell by nearly half, The Archi-Meter still rated the probability as Medium-High. This proved correct - it was not yet safe to re-enter the market. Subsequent market corrections of 11% and 28% followed soon after.

Follow-up applications of The Archi-Meter are currently being developed for the US stockmarket.

Contact us today to discuss

how we can help you!