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.
US equities, specifically large cap stocks, almost triggered back in this month. REITs moved in the other direction and triggered back out. US equities, REITs, and Developed Foreign equities are all fairly close to their trigger line. In the US equity space, the gain has mostly been in the large capitalization weighted indices. The median stock has not faired nearly as well, with the NYSE index still well off its highs earlier in the year. While US stocks may certainly resume their upward march, we believe this type of market action is symptomatic of topping action in a late stage bull market. On a more positive note, we anticipate that the entry points into emerging markets, natural resource equities, and commodities-when they eventually appear-will be significantly lower than when our system signaled an exit.
Thank you for your trust.