I have been a little tardy on several stocks having a positive transit of EBV-3 or as we say “Coming Out of the Blue”. (No need to worry about timing, these are long-term trades that can take time to workout but very profitable for investors.)
If unfamiliar with our “Coming Out of the Blue” investment strategy please see my blog here, “Questions and Answers about “Coming Out of the Blue!”
Model Price Chart
Here is our model price chart of Metlife.
Metlife Inc. with weekly price bars, EBV Lines (colored lines) and model price (dashed line)
For those interested, a daily updated chart of MET subsequent to this post will be maintained on Facebook, here.
As you can see MET had a positive transit some weeks ago.
Long-Term Model Price Chart
Metlife Inc. with monthly price bars, EBV Lines (colored lines) and model price (dashed line)
Metlife had a negative transit of EBV-3 back in the financial crisis of 2008. From mid 2009 to mid 2011 Metlife tried to hang on to EBV-3 before letting go, negative transit of EBV-3, in mid 2011. MET has spent 2 years under EBV-3 until the positive transit recently.
Having MET transit EBV-3 is a positive not only for Metlife but also a positive for the US market as a whole. The insurance industry has had a brutal 5 years in the wake of the financial crisis of 2008 and the zero interest rate policy (ZIRP) of the Federal Reserve Board. As with many insurance companies, in both US and Canada, this industry is finally showing some signs, with positive transits of EBV-3, of life.
For Canadians we had both Sun Life and Manulife transit above EBV-3 sometime ago as noted here and here in this blog with healthy returns since we noted their transits.
We can now add Metlife to this growing group of companies that finally have had a positive transit of EBV-3 or “Coming Out of the Blue”.