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Investment Newsletter Profile:
Investment Models, Inc.

Investment Models, Inc. has a very impressive 40+ year track record and is consistently ranked a “Top Ten Timer” by Timer Digest. Business Week calls Jim Rohrbach “The Zen of Market Timing.” Tobin Smith says, “Jim Rohrbach is the best market timer in the country.”

James O. Rohrbach, R.I.A. is the founder and President of Investment Models, Inc. He has been identifying changes in the trend of the stock market in real-time since 1970. He created the RIX (Rohrbach Index) that mathematically translates the market action every day into a number that represents the trend of the market for that day. He believes that he may be the only Market Timer who does this.

The RIX Index is a mathematical formula that provides numbers that are simple to understand and have been successfully used for over 47 years.

There is no guessing, hedging, predicting, or what ifs. He does not make any attempts to forecast the future course of the stock market. He simply identifies the changes in the trend and goes with those changes.

How does the RIX Index work? Each day the market action is converted into a number. There is a NYSE RIX and a NASDAQ RIX. For the NYSE RIX he needs to see a +12.0 to issue a Buy Signal and a -12.0 to issue a Sell Signal. Once a Buy Signal is issued no action is taken until the RIX reaches -12.0. The RIX can go as high as it wants and it can go down to -11.9 but a Sell Signal is not issued until -12.0. It is that simple and that precise.

It is very important to not anticipate a Signal because frequently the RIX will get very close to a Sell Signal and reverse to the upside. But once a Signal is issued, you have a high degree of confidence that it is a valid Signal. Once a Sell Signal is issued he stays out of the market until he sees the next +12.0 reading.

The NASDAQ RIX works the same way, but because of the volatility he only needs to see a +6.0 to get a Buy Signal and a -6.0 to get a Sell Signal.

If that sounds too simple to be effective, it was designed to be simple, because he set out to develop a model of the stock market that was mathematical, simple, and accurate. Any- thing less than that will lead to interpretation, guessing, and failure. The RIX Index has avoided every Major Decline and has kept subscribers in every Major Up Move in the stock market since 1972.

Mr. Rohrbach is a graduate of Lehigh University, he is a Registered Investment Advisor, and a Voting Member of the Market Technicians Association (MTA). He was featured in a 5-page article by Business Week Online, has written several articles that appeared on the Guru’s Corner at CBS MarketWatch. He is a regular speaker at Money Shows, has appeared on TV, and is a regular guest on National Talk Radio, Business Talk Radio. If you want to know more about Jim, go to any search engine and search for James O. Rohrbach.

Most people want to know where the market is going in the future. They want to know where the stock market is going in the future. They want to know where the top or bottom of the move will end. You do not need to know that. What you need to know is when the trend turns up or turns down. You need to identify the trend changes after it starts, but close to the top or bottom. You can’t tell how long the trend will last and you don’t need to know that, as long as your mathematical model is reliable at identifying the change in trend, and then you go with it for as long as it lasts.

He spent 25 years in various management positions at AT&T until the Bell System was broken up in 1984, when he retired to spend full time doing what he really enjoys. His entire focus is on helping investors solve what has been characterized as the most complex economic problem faced by man – Timing the Stock Market.

People spend an inordinate amount of time trying to predict the future course of the stock market for the next few weeks or months. That’s a fool’s game. The same people can’t predict what the market will do tomorrow. They fall into the trap of making up their minds where the market will go, and then look for indicators to support their subjective decisions. Then when the market starts to go against them, they ignore the fact that the trend is changing. This leads to them staying with their predictions because they just can’t believe that their prediction is wrong. If they concentrated on the trend, they could see when it starts up or down and act on the tend reversal.

When you are wrong you have to admit it and change your mind. The RIX is mathematical, precise, and unemotional.

The RIX Strategy and 6 simple rules:

1. Never ignore a RIX Buy or Sell Signal. We never know how long they will last.

2. If you join the RIX strategy late and we are currently on a Buy Signal. Buy immediately: and, if currently on a Sell Signal, Sell immediately.

3. Never try to use more than one indicator to determine when to get in or out of the market; Too Confusing.

4. Do not try to track too many stocks; too time-consuming. Use the S&P 500 for most of your investments, and a few favorite stocks. 5. Never try to predict the future course of the stock market.

6. If you lost a lot of money in the last Major Market Decline, you need a strategy to avoid that from happening in the next Major Decline. That is the RIX Strategy.

Why did people lose a lot of money in the 2008 Bear Market? There were several reasons.

1. They could not see the change in the trend and no one told them when it was time to get out.

2. When they saw their portfolios dropping, they would not admit that they had to take a loss in order to preserve what they had left.

The hardest lesson to learn is to take a loss. Everyone wants to wait until the price gets back to what they paid for it and then sell. They can’t admit that they were wrong, so they ride it out.

Editor’s Note: Investment Models, Inc., 14326 Pine Valley Rd., Orlando, FL 32826, 1 year, 52 issues, $395. Subscribers to Investment-Models receive a weekly email newsletter, frequent Daily Bonus Reports, prompt notification on the day editor James Rohrbach issues a Buy or Sell Signal. Also, unlimited free consultations with Jim Rohrbach.

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