WealthProtect Status Update: July 2013
- Regi Armstrong
- Jul 15, 2013
- 2 min read
by Reginald A.T. Armstrong, CPWA®
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.
Asset Class Status Probability of
Status Change
US Equities In Mid
Developed Foreign Equities In High
Emerging Foreign Equities Out High
Real Estate Equities In High
Natural Resource Equities In High
Commodities Out Low
Energy MLPs In Low
Commentary
Our system triggered an exit for emerging foreign equities at the end of June, and almost triggered for developed foreign, natural resource, and real estate equities. Rising interest rates again punished bonds in the past month. By the time you receive this we will have rebalanced your portfolios to exit emerging markets, added energy MLPs, and adjusted our bond mix to attempt to better handle rising interest rates.
*The Armstrong Wealth Management Group WealthProtect System is an investment risk control system designed (but not guaranteed) to limit significant losses in major bear markets (excess of 30% loss from market peak to market trough). It is NOT designed to prevent normal market losses (under 20%). No strategy can assure a profit or protect from a loss. Occasional false signals can reduce returns.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments(s) may be appropriate for you, consult your financial advisor prior to investing. The economic forecasts may not develop as predicted.
Stock investing involves risk including loss of principal. International and emerging market investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors.
Investing is Real Estate Investment Trusts (REITs) involves special risks such as potential illiquidity and may not be suitable for all investors. There is no assurance that the investments objectives of this program will be attained. The fast price swings in commodities will results in significant volatility in an investor's holdings.
Alternative investments may not be suitable for all investors and should be considered as an investment for the risk capital portion of the investor's portfolio. The strategies employed in the management of alternative investments may accelerate the velocity of potential losses.
The fast price swings in commodities will result in significant volatility in an investor's holdings.
Investing in MLPs involved additional risks as compared to the risks of investing in common stock, including risks related to cash flow, dilutions and voting rights. MLPs may trade less frequently than larger companies due to their smaller capitalizations which may result in erratic price movement and difficulty in buying and selling. MLPs are subject to significant regulation and may be adversely affected by changes in the regulatory environment including the risk that an MLP could lose its tax status as a partnership. Additional management fees and other expenses are associated with investing in MLPs.
Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.
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