Wealth Protect Status Update: May 2016

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 as well as changes in overall asset allocation.​

Commentary

US Small equities continued to strengthen and are very close to triggering an entry position. Similarly, commodities have strengthened and the possibility of an entry within a few months is becoming more likely. Conversely, both developed and emerging foreign equities weakened a bit. Finally, I have added energy infrastructure stocks to this update, although we have been tracking them for several years. The exit trigger for these equities was back in 12/14 and this month triggered an entry position. While the overall market seems to be strengthening, my overall take is that real assets (real estate investment trusts, natural resource equities, commodities) and energy-linked assets appear to be improving after 18 months of weakness. The remainder of the US market, however, still seems to be in a topping formation with the overall trend being undetermined. Having entered the bumpier summer months, we may want to brace ourselves for some turbulence. Keep in mind, it is not the short-term wiggles that matter; it is the longer term gains and losses that make the real difference.

Thank you for your trust.

*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.The prices of small and mid-cap stocks are generally more volatile than large cap stocks. All indices are unmanaged and may not be invested into directly.

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 investment objectives of this program will be attained.

The fast price swings in commodities will result in significant volatility in an investor's holdings.

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

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio.

Diversification does not protect against market risk. The forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

Because of their narrow focus, sector investing will be subject to greater volatility than investing more broadly across many sectors and companies.

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