We can monitor speculative activity (i.e. bubble formation) for a variety of assets. We already worked on the following asset classes:
We can implement tests to detect psychological biases and suggest solutions to overcome them.
How the data can be used: example of an investment strategy
Several investment strategies can be developed using the Berman Scale© and/or the trading signals.
We present here a simple long-term, long-only index strategy based on monthly data with the following characteristics:
. Portfolio size: 100,000 USD
. Asset traded: ETFs on the S&P 500 index
. Investment decision: Buy for 100,000 USD worth of ETFs when a BUY signal is returned and close position when a SELL signal is returned
We ignore all other BUY signals returned between the first BUY signal and the next SELL signal.
Below is the result of this strategy (annual performance in %)