This is the monthly WealthProtect System* status update and includes the probability (Low, Mid, High) of a change in status within the next two months.
Ouch, that hurt. The sharp downside move in the markets, followed by the rebound due to the election caused our system to get super close to triggering out of small caps. So no trades this month. Our system is designed to take the guesswork out of when to hold asset classes (when they are above trend) and when to get out of them (when they are below trend). When the markets fell in January-February, they stayed comfortably above trend. In the summer months, four of the asset classes fell below trend, so we exited. Now the remaining asset classes are flirting with going below trend. Our system is not designed to protect against every wiggle or small decline (yes, even 10% is a small decline). Our system is designed to manage the risk from major drops in the market.
October was a brutal month for stocks with large caps falling about 8%, small caps about 10%, and technology stocks were even worse. Real Estate Investment Trusts did better, but still fell. Bonds were mostly weak in October but strengthened as the sell off in stocks got worse. This is a frustrating time for investors and is often when major mistakes are made. Please give one of us a call if you would like to discuss your personal situation.
Thanks for your continued trust.