WealthProtect Status Update: September 2021

This is the monthly WealthProtect System* status update, where we include 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

No changes to the system. We continue to monitor all stock positions with both the long-term moving average and a more sensitive short-term moving average.

Economic/Market Commentary

In my opinion, we are now in a Honey Badger Market. If you know anything about honey badgers, they just don’t care. They can kill a cobra and if bitten, sleep off the venom. Even lions don’t care to mess with them. This market is a bit like a honey badger—whatever the economic news or fundamentals, it doesn’t care, it keeps rising! Economy is slowing—don’t care! Market breadth (number of stocks participating in the advance) is horrible—don’t care! Price to sales ratio highest in history—don’t care! Composite market value to GDP (Buffet Indicator) highest in history—don’t care!

We know, however, that at some point it will care. Whether that time is sooner or later, we will see. Whether it will be a stiff correction or the beginning of a bear market, we will see. Advice for today—don’t get complacent. Check that your risk allocation (stocks, high yield bonds) is within your tolerance. Advice for when the market does correct—don’t panic. This is why we have a strategy.

If, however, you want to revisit your strategy before the next market drop, please contact your wealth manager.

Thanks for your continued trust.