“Scientifically Predictable,” developed by Dr. Dan Geller, is the first investment model that uses behavioral economics for high-confidence investments avoiding panic and emotional trading
Analyticom LLC, a behavioral economics research firm, just introduced Scientifically Predictable – a scientific model for high confidence trend investing in Exchange-Traded Funds (ETFs).
“The model yielded 31.62% NAV return in 2019, and is holding stable during the current market tumble,” said Dr. Geller President of Analyticom and the developer of the Scientifically Predictable investment model. “Scientifically Predictable was designed to help individual and institutional financial advisors make high-confidence scientific investment recommendations to their clients.”
Scientifically Predictable features 8 ETFs that have very strong and highly significant correlation to the behavioral economics factors used as a predictor in the model. The model shows the financial advisor the projected trend for each of the featured ETFs, and suggests a pricing position. If the pricing position is projected to be positive, the model recommends a long position, and when negative, the model recommends a short position.
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“The model is highly predictive because it uses a scientifically-validated behavioral economics predictor – the Money Anxiety Index, which has been peer reviewed and published in the Journal of Applied Business and Economics,” he said. The Money Anxiety Index is highly predictable. In October of 2006, it predicted the arrival of the Great Recession 14 months before the recession was officially declared. In addition, the Money Anxiety Index is highly reliable because it is based on what people actually do with their money, rather than what people say in response to consumer confidence surveys.
Scientifically Predictable is published monthly with an updated trend forecast and pricing position for the next 30-90 days. Financial advisors may recommend some or all the featured ETFs to their clients. Repositioning is required only when there is a change in the projected trend, which prevents impose and emotional trading leading to loss and frustration.
Scientifically Predictable is available to individual and institutional financial advisors on an annual subscription basis. Financial advisors like the fact that the model does not required any software installation, or the transfer of sensitive data to and from the model. The updated monthly investment trend projection and pricing position is emailed to subscribers in the first week of each month. The annual subscription is based on the total assets under management.
Like Jim Simons, in Gregory Zuckerman’s bestselling book “The Man who solved the Market,” Dr. Geller spent nearly two decades researching, developing and testing the right behavioral economics predictor that produces high-confidence trend projection and pricing position of ETFs. However, unlike the Jim Simons’ Medallion model, Scientifically Predictable was designed for a select number of high-confidence-trend investing rather than frequent trading of large number of equities.
“Scientific investing is going to be the fastest growing mode of investing in the future” said Geller. “With the aging of America, more financial advisors are asked to recommend or execute high confidence investments for their clients rather than high-risk frequent trading. Scientifically Predictable allows financial advisors to exercise their fiduciary responsibility quickly, easily and scientifically.”
