Wealth Protect Status Update: June 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

I am both excited and nervous. I am excited because our models are at their most invested since August 2014. This potentially indicates a broad strengthening of the global market and economy. I'm also excited because some of the classes such as Commodities, Natural Resource Equities, Energy Infrastructure Equities, and Emerging Foreign Equities have emerged from a serious bear market and appear attractively valued. On the other hand, it makes me very nervous as US equities remain overvalued, the US economic data remains mixed at best, and low global bond yields continue to indicate slow growth ahead. I believe we are at an inflection point and while the recent market action seems to point to an upside breakout, I am cautious as I don't believe the all clear has sounded yet. This is why we stick to our discipline. On that note, I am attaching a new illustration of how we create our WealthPortfolios.

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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