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. US equities continue to trade in a very narrow range. Emerging market and natural resource equities weakened a bit making it less likely we will trigger in within a few months. The most significant move came in the REIT sector as US real estate investment trusts have come down significantly. The likelihood of a triggering event is now high. The most noteworthy action, however, is in the bond market as global yields have risen sending bond prices lower. This is interesting as global growth is still rather weak. Sticking with a strategy when returns are low and frustrating is difficult as it is tempting to "do something" in an attempt to or to try and generate some sort of return. I urge investors to be patient as impatience can oftentimes lead to decisions that can really hurt a portfolio.
Thank you for your trust.