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.
2016 markets opened with a thud. The Dow Jones Industrial Average and the S&P 500 had their worst first week ever. As of 1/13/16, not only are they both down about 10% from their recent highs, but US small cap stocks, as measured by the Russell 2000, are down 22% from their highs in June 2015, having entered a bear market. Our WealthProtect System triggered out of US equities back last September and currently is out of all major equity classes. High Yield (Junk) bonds have been savaged, while US Treasury bonds have rallied. Whether this is the beginning of a major bear market or simply a nasty correction remains to be seen.
Please call us if you have questions on your allocations or portfolio.
Thank you for your trust.