Wealth Protect Status Update: December 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

There are no trades in our WealthProtect System this month; we remain fully invested in equities in our broad allocation. The "Trump Rally" has been fairly powerful. It has been particularly beneficial for US Small Caps, financial stocks, healthcare stocks, and the energy sector. On the other hand, bond yields have risen, and this has led to a dramatic drop in bond prices, especially in Long-Term Treasuries and municipal bonds. In November alone, the Barclay US Aggregate Bond Index fell over 2%. Interest rate sensitive investments such as Real Estate Investment Trusts and utility stocks have been relatively hammered. Technology stocks and emerging market equities have also been under pressure. This rally is not unusual as the US market tends to rise after presidential elections in the short term. Many times, however, this move is reversed. For example, when Ronald Reagan was elected in 1980, the market rose about 6% initially, only to eventually drop 25% in 1981-1982 before beginning the very powerful 1982 bull market. So our advice is to avoid getting too caught up in this rally emotionally. Stick with your strategy or consult us if you would like to revisit your strategy.

Thanks as always and have a blessed Christmas and a Happy New Year.

*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.

#weathprotectsystem