WealthProtect Status Update: February 2014

by Reginald A.T. Armstrong, CPWA®

We email the status of our WealthProtect System* monthly and give 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.

Commentary

Equities began 2014 with a slump, led by a sell-off in emerging market currencies and stocks. In our WealthProtect System this month emerging markets and natural resources triggered out. With commodities and REITS already out, this makes four major equity classes that have triggered out. While the greater likelihood is this is a normal correction after a long period of low volatility, we remain aware that according to many classic measures the market is considered overvalued.

*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.

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 result in significant volatility in an investor's holdings.

Investing in MLPs involves additional risks as compared to the risks of investing in common stock, including risks related to cash flow, dilution and voting rights. MLPs may trade less frequently than larger companies due to their smaller capitalizations which may result in erratic price movement or difficulty in buying or 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.

All performance referenced is historical and is no guarantee of future results.

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