Wealth Protect Status Update: April 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 once again this month. Real Estate Investment Trusts, Commodities, and Emerging Foreign Equities reversed their trend and had a strong month. US equities, on the other hand, weakened a bit.

Market Commentary

Over the past 30 days (mid-March to mid-April), diversification has been rather helpful with most equity asset classes outperforming US equities. Bonds had a volatile 30 days, with 10 year US Treasury yields first spiking to 2017 highs and then as geopolitical concerns developed over Syria and North Korea, returning to 2017 lows as we approached Easter. Fundamentally, nothing much has changed. US equities and US bonds remain overvalued; many other asset classes remain more reasonably valued. From an economic standpoint, the longer the Trump Administration waits to release his tax plan, the more likely it weighs on the economy. Many businesses are optimistic about changes they expect to be proposed, but many may also be waiting to make business decisions until they know what the changes will likely be. The optimism that has boosted the US equity markets may fade if we don't get something concrete soon.

*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.

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