IBM was a tremendous company in the 1960's and
1970's. . But if you bought the stock at the end of 1974 you would have lost
money by holding it for twenty years. In the 21st year of this cycle, the
stock took off. The following charts shows a bit of the Indicant model with the
colored lines. You may now be getting a feel for how the Mid-term Indicant
works.
Although the Halliburton chart was difficult to
read, the IBM chart would be impossible to read as it covers a span of over a
quarter of a century. So, we broke IBM down into three nine year segments so you could
see how the Mid-term Indicant helped you make 574.3% over this past quarter of a
century. During the twenty-year period, when IBM stock remained flat, the Mid-term Indicant delivered
194.7% versus "buy and hold's" yield of zero.
