WealthProtect Status Update September 2020

Greetings! 

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, changes in overall asset allocation, and on the market in general.  

System Commentary

The unsustainable rally hit an air pocket sending stocks, especially technology shares, sharply down in the first trading days of September. Despite mid and small cap value outperforming, both still triggered out. Real Estate Investments Trusts (REITs) and other inflation sensitive investments strengthened. In our models, we added another sleeve to the REITs. 

Economic/Market Commentary

The economy continued to be a mixed bag with some promising numbers for the third quarter tempered by ongoing aftershocks from the business shutdowns. Ten-year bond yields finally made a move higher, moving to the top end of their recent range. September is historically a weak month for stocks, and with the election around the corner likely to increase volatility, investors may want to buckle up! This doesn’t mean change your strategy; it does mean avoid getting caught up in the euphoria or fear of the moment.

Thanks for your continued trust.