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.
The WealthProtect System again did not trigger, but it was oh so close. Fears over Greece and China caused developed foreign equities to almost trigger out, while rising interest rates caused REITs to come to a razor's edge of triggering out. US equities also came fairly close to triggering out. Since US equities have only dropped a modest amount, you might be wondering why they would be so close to exiting. The reason is that the market is actually negative over the past six-seven months, even if only slightly so. Consequently, the moving average we monitor and the US markets are converging. As I mentioned in a brief note to our clients, this is a frustrating time for investors. It may be a good time to review your strategy, but is not, however, a time to abandon your investment discipline out of frustration.
Thank you for your trust.