Wealth Protect Status Update: March 2017

This is the monthly WealthProtect System* status update and includes the probability (Low, Mid, High) of a change in status within the next two months. Below is a commentary on actions taken this month as well as changes in overall asset allocation.

System Commentary

There are no trades in our WealthProtect System this month; but recent market weakness outside of traditional equities has brought a number of asset classes closer to triggering. Real Estate Investment Trusts and Commodities are the closest to exiting.

Market Commentary

The markets have seen a fair amount of rotation in the past several months. Before the election, large company value stocks were strong performers, followed by small cap stocks after the election. January had large growth stocks, foreign stocks, and real assets outperforming. With February came a strong S&P 500 performance while most other stock investments underperformed. So far, in March, equities seem to be retreating. On the bond side of life, the anticipation of a hike in the Fed Funds rate has hurt interest-rate sensitive investments. Of course, we don't know how things will play out, I just want to emphasize the importance of a diversified portfolio. The strength of the US stock market relative to everything else over the past few years leads to great temptation to concentrate money on what has been working so well. It will likely be a painful lesson indeed for those who decide to abandon diversification at these extremes.

*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.

The Standard & Poor's 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

#weathprotectsystem