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.
I am both excited and nervous. I am excited because our models are at their most invested since August 2014. This potentially indicates a broad strengthening of the global market and economy. I'm also excited because some of the classes such as Commodities, Natural Resource Equities, Energy Infrastructure Equities, and Emerging Foreign Equities have emerged from a serious bear market and appear attractively valued. On the other hand, it makes me very nervous as US equities remain overvalued, the US economic data remains mixed at best, and low global bond yields continue to indicate slow growth ahead. I believe we are at an inflection point and while the recent market action seems to point to an upside breakout, I am cautious as I don't believe the all clear has sounded yet. This is why we stick to our discipline. On that note, I am attaching a new illustration of how we create our WealthPortfolios.
Thank you for your trust.