APRIL 2012 PRO-FOLIO TRADE INSTRUCTIONS
OverviewI'm short on time and one day late! This will be brief. European eyes remain on Spain as that nation's situation begins to unravel. They will follow the path of Greece over the coming months, however, as an economy much larger than Greece, it will be an interesting experiment to see what happens. Spain is probably too large to be rescued in any meaningful way. Solutions to this problem will be innovative indeed.
As a result of current conditions, Pro-Folio remains 80% invested in its designated holdings. Here are the trade instructions:
The Pro-Folio model evaluates its holdings on a monthly basis. As of the last trading day of April (30th), we have the following trade signals:
SPY - HOLD
EFA - HOLD
IYR - HOLD
DJP - AVOID
IEF - HOLD
For existing investors:
As of today, 80% of your portfolio should be invested equally in the 4 positions above marked as "HOLD".
For new investors:
If you are new to Pro-Folio this month, you should divide your portfolio into 5 equal parts, and invest an equal amount of money in each of the securities shown above, marked as "HOLD." Because you didn't invest in some of the components of the model at the time when the buy signal first turned positive, your return on these initial trades may not be reflective of the model's typical expected returns.
I'm reading many mixed opinions on what is next for the U.S. economy. With one company, Apple, having a market capitalization equal to the entire U.S. Retail sector, I sense that things are out of whack. I wouldn't be surprised to see a substantial pull back in U.S. equities over the coming months. Be careful out there!!
Fortunately for us, the Pro-Folio model has proven its worth over 37 years including the 2008 market crash, so we can continue to follow it precisely and expect that the value of our holdings will be preserved.