Readers, if you thought the May instructions were posted late, I have really outdone myself this time. The good news is (I always try to find some good news don’t I?), there are no trades this month, so nothing to worry about.
The Pro-Folio USA model evaluates its holdings on a monthly basis. There are no trades this month. As of the last trading day of May (31st), we have the following trade signals:
For existing investors:
You should have spent the month of May 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 make NO changes.
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.
So “just like that” over the last couple of months, Pro-Folio is almost totally invested after spending quite some number of months mostly in cash. It is curious how these things work out.
The US stock market remains overvalued. Almost every analyst I read is saying not some but ALL the smart money is in cash or holding defensive positions based on an expectation of pull-back for US equities. No one knows precisely when that event 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 will work hard on getting back to a timely schedule with my blog posts! Thank you for your interest in Pro-Folio USA!