My apologies for the late delivery here – lucky for me there are no trades this month. Not a lot has changed since the start of September – weakness remains in the global stock markets, broad commodities are showing no upward momentum of any kind, and US Real Estate is in a holding pattern. Going into December, Pro-Folio USA is holding SPY and US government bonds.
The Pro-Folio USA model evaluates its holdings on a monthly basis. There is no trade this month. As of the last trading day of November (30th), we have the following trade signals:
For existing investors:
You should have spent the month of November invested in the holdings above that are marked HOLD or SELL. You should have kept the cash equivalent of the positions marked AVOID, ready to invest when those segment signals turn positive.
For new investors:
If you are new to Pro-Folio USA 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” or “BUY.” Because you didn’t invest in the “HOLD” 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 am reading many analysts who are saying US stocks are ripe for a correction; earnings estimates are getting revised downward, and inventories are building up in many industries. These can be signs of an impending downturn.
Fortunately for us, the Pro-Folio USA model lost less than 1% of value in 2008, the worst year in recent memory and the only year on record that Pro-Folio USA lost value. As shown in the 2014 performance numbers that I posted recently, the long term average growth of the model is north of 8% per year. We can continue to follow the model with confidence that our assets will be protected.
If you want to get the PDF booklet showing you how to implement the Pro-Folio USA trading model on your own, click here.
If you want to learn more about the Pro-Folio Global upgrade portfolio, click here.
Dear reader, I wish you joy and fulfillment over the holidays! Thank you for your interest in Pro-Folio USA, and I will see you at the end of the year.