The RITE Report
The RITE Report generates indices from the monthly compilation of corporate, business, economic, & political news snippets that have a directional bias inherent within the headline. These News Indices are Used as Factors for Prognostication of Market Direction with Risk Analysis for Hedging Considerations
The Origin of the RITE Report
The RITE Report’s name was derived from the acronym of the four variables inherent in all economic transactions; Risk, Information/Knowledge, Time, and Effort. Of course, this would be for a service, and if the product were a material good, there would be an additional factor of Material - or Land as the economist would say.
The derivation of these four variables is explicated in the work, Philosophical Equations of Economics by Chris Angle which may be perused at this website at the page "Economic Equations."
Purpose of this monthly report is a combination of the following:
1) To give investors an indication of economic and stock market direction;
2) To provide a quantification of investment risk;
3) To suggest a degree of hedging the risks inherent in investing relating to downturns due to political and economic events; and
4) To indicate a degree of use of the U.S. Dollar Index and/or Gold futures to hedge the risk of depreciation of a U.S. Dollar dominated value of a portfolio.Hence, the investor would use the RITE Report to determine:
a) whether to be in the market at all;
b) to what degree the investor should be in the market;
c) to what degree the investor should make use of hedging instruments relative to stocks and to the value of the U.S. Dollar. The extent of economic, political, technical analysis risk will be noted in a chart in each edition of the report and will dictate the overall degree to which the recommended extent of the hedges should be applied to individual investor portfolios.
Contents Outline of the Monthly Issues
1) Business News Compilation
Part A - Negative Snippets
Part B - Positive Snippets
Part C - Hedging/Inflation Snippets
2) Political Risk
3) Macro Economic Events
4) Technical Analysis - As economic and political information wends its way to investors and these investors assimilate the relevant information transforming it into knowledge that is prioritized, investment decisions are made. Technical Analysis looks to glean these informational flows that cause reversals of market trends and establish new trends.
5) Chart of Overall Risk
6) Economic Theory Considerations, Summary, Technical Analysis Summary, Recommendations, and Statistics such as,
- REAL GDP
- UNEMPLOYMENT RATE
- INDUSTRIAL PRODUCTION
- PURCHASING MANAGERS INDEX
- RETAIL SALES
- CONSUMER SPENDING
- CONSUMER CONFIDENCE
- HOUSING STARTS
- EXISTING HOME SALES
- TRADE DEFICIT
- INFLATION HEDGING NEWS
In regards to U.S. Dollar:
- CONSUMER PRICES (% change from previous year)
- PRODUCER PRICES
7) Chart of Overall Risk
Categories of Risk are Effort, Risk, Freedom, Knowledge/Info
6) In each month's issue there will be a Summary which will include:
A) STOCK MARKET RECOMMENDATION
B) HEDGING RISK ANALYSIS
Category 1: International Political Risk
Category 2: Domestic Political Risk
Category 3: Tax Risk
Categories 4 & 5: Individual Incentive and Production of Knowledge4
Category 6: Technical Analysis
C) EQUITY MARKET HEDGE CONCLUSION
D) U.S. DOLLAR HEDGE CONCLUSION
1) This Newsletter is available by subscription only.
2) Custom investment research on specific industries and sectors is available on request.
3) This communication does not constitute an offer to sell, or a solicitation of an offer to buy or sell, any products named herein, commodities interests, futures contracts, or securities, and is intended for informational purposes only. Any offer for any investment product will be made solely by the appropriate disclosure document or private placement memorandum.
4) The RITE Report has been prepared either from publicly available information or reflects the opinions of the author. Information contained in this report is believed to be reliable but may not have been independently verified. The RITE Report does not guaranty, represent or warrant, or accept any responsibility or liability as to, the accuracy, completeness or appropriateness of the information contained herein. At no time will the RITE Report make specific recommendations for any specific person, and at no time may a reader, caller or viewer be justified in inferring that any such advice is intended. Information contained herein may not be current due to, among other things, changes in the financial markets or economic environment. Opinions reflected in the materials are subject to change without notice. Forecasts represent estimates. Information provided by the RITE Report is expressed in good faith, but it is not guaranteed. Long-term success trading or investing in the markets demands recognition of the fact that error and uncertainty are part of any forecasting effort. Investing carries risk of losses. Information provided by the RITE Report does not constitute, and should not be used as a substitute for tax, legal, or investment advice. Please ask your broker or your advisor to explain all risks before making any trading and investing decisions.
5) Past performance is not indicative of future results.
6) Trading futures and options involves substantial risk of loss and is not suitable for all investors. Carefully consider the suitability based upon your experience, objectives, financial resources and other relevant circumstances. Alternative investment products, including hedge funds and managed futures, involve a high degree of risk. Alternative investment performance can be volatile and are not suitable for all investors. An investor could lose all or a substantial amount of his or her investment.