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. We also include a commentary on actions taken this month, changes in overall asset allocation, and on the market in general.
No asset classes triggered out or in this month, but small caps were super close to triggering out.
Over the past month, stocks have bounced back and forth but have generally been lower. This has been most pronounced in small cap stocks after their strength back in early to mid-September. There are two major things to keep in mind, in my opinion. First, despite the downside, we are (as of 10/10/19) within 3.5% of the S&P 500 all time high. US stocks have done fairly well this year. Second, despite the returns of this year for the index, we really haven’t had much progress for almost 21 months. The market is about where it was back at the peak of September 20, 2018, as well as about where it was on January 26, 2018. This market continues to appear to be in a topping process, but that is far from certain.
Stay positive, but stay wary. Let us know if you have any questions.