Readers, I owe each of you an apology for posting May instructions so late. We do have a buy signal here. The good news is, you can make this trade today at a better price than you could have on the last trading day of April or first day of May.
Commodities (DJP) have tripped the buy signal for the first time in many months.
The Pro-Folio USA model evaluates its holdings on a monthly basis. There is one (1) trade this month. As of the last trading day of April (29th), we have the following trade signals:
For existing investors:
You should have spent the month of April invested only in the holdings above that are marked HOLD or SELL. You should have kept the cash equivalent of the positions marked AVOID or BUY, ready to invest when those segment signals turn positive. Now, you should invest 20% of your total portfolio in DJP. Stated another way, since you are already holding positions in IEF, SPY, and IYR, now you should invest 50% of your CASH in DJP.
For new investors:
If you are new to Pro-Folio USA this month, you should divide your portfolio into 5 equal parts, and invest one of those parts 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.
Given the need to get this out ASAP, what I said last month is still applicable:
So …. I still owe you the 2015 performance analysis, but I have not forgotten – I will keep it top of list. I myself remain curious to see what the numbers look like. If any followers out there are willing to share your returns, go ahead and post a comment on this message! I would love to hear how you are doing.
The US stock market is like an icy cornice of snow high up on a mountain ridge, just waiting for a unwary skier or other stimulus to cause it to fall. No one knows when that stimulus will occur, but fortunately for us, the Pro-Folio USA model has never lost more than than 1% of portfolio value: that was 2008, the worst year in recent memory and the only year on record that Pro-Folio USA lost value. Keep in mind, 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.
I wish you beautiful spring sun and showers for the month of May! Thank you for your interest in Pro-Folio USA!