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.
After crossing their historical long-term trend lines, US markets continued to sell off through most of September returning near their August lows. Then beginning on September 30th, global markets began a sharp, broad rally as weaker economic growth in the US gave investors hope that interest rates will stay low for even longer. This especially aided the real estate sector and REITs triggered back in this month. We never attempt to predict the market; we use our WealthProtect System discipline to attempt to significantly reduce the severity of down markets while still preserving long-term upside potential. The "cost", if you will, of this strategy is the whipsaw action that will take place along the way. We continue to believe US markets are overvalued and that sticking to our discipline, while frustrating in the short run, should ultimately bring value for our clients.
Thank you for your trust.