We email the status of our WealthProtect System* monthly and give probability (Low, Mid, High) of a change in status within the next two months. We also include a commentary on actions taken this month as well as changes in overall asset allocation.
Last month I said that I was both excited and nervous. This month I am just nervous. You may ask why would I be nervous after the markets shrugged off "Brexit," the S&P 500 reached a new high, and we just triggered back into emerging market equities, which is one of the few areas that is not overvalued. The answer lies with the bond market. While US equities have rallied to new highs indicating expectations of economic growth, the US Treasury bond market has hit new lows on the 10-year yield, indicating expectations of economic weakness. Both can't be right. In my experience, the bond market usually proves to be the better predictor. We will see.
Thank you for your trust.