Financial Research - Asymmetrical Risk/Reward
Financial Research - Asymmetrical Risk/Reward
The Boom & Bust Signal is an indicator developed by David Brown and Professor Nouriel Roubini based on both fundamental and statistical analysis that has been applied to different asset classes to measure the possibility of a market correction.
Is a Digital Signal (Buy/Sell), easy to read, that indicates when one asset class is Overbought (Red BOOM) and it is time to reduce the exposure to that asset class, or Oversold (Green BUST), and it is time to increase exposure to the same asset class.
The Macro Analysis overlay is a valuable addition to the Signals, offering a comprehensive examination of both economic and geopolitical phenomena.
Roubini
Macro Analysis
Risk Asymmetry Analysis
Zoom Conferences
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Founded in 2020, The Boom Bust is a leading global research platform, specialized in global macro and Algo trading signals. Our reputation, built up over nearly three decades, is founded on the quality of our exceptional people, and our best-in-class technology.
35
Years' Experience
90+
Signals in 3 Years
+7%
Average Signal Performance
+80%
Signal Accuracy
The Boom Bust
Compared to other overbought or oversold indicators The Boom Bust Signal is more accurate when the signal is issued (Higher probability of a market correction), although the indicator is issued less frequently than other market indicators as The Boom Bust looks at extreme overbought or oversold situations. This means that it is possible to have a market correction in one of the asset classes without the Boom & Bust indicator flashing red or green, but when the indicator is showing a Red Boom or a Green Bust, the probability of a correction is very high. For example, with reference to the S&P Index, the Boom Bust Signal has predicted 7 of the past 9 market corrections (over 75%).
RED BOOM
Probability for a
Correction HIGH.
70% / 85% *Probability of a
-10% / -20% Correction
GREEN BUST
Probability for a Recovery HIGH.
70% - 85% *Probability of a
+10% / +20% Recovery
The Boom Bust Signal
Blue BUST
Probability for a Recovery Medium
50% / 65% *Probability of a +2.5% / +7% Recovery
Orange BOOM
Probability of a Down Correction Medium
50% / 65% *Probability of a -2.5% / -7% Correction
* Probability of a correction may change depending on asset class volatility.
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