We’ve got a buy signal for EFA this month, which is interesting given the Brexit uncertainty, especially as it applies to the Eurozone. This trade makes Pro-Folio USA fully invested — no cash on the sidelines — for the first time in many months.
The Pro-Folio USA model evaluates its holdings on a monthly basis. There is one trade this month. As of the last trading day of July (29th), we have the following trade signals:
For existing investors:
You should have spent the month of Julyinvested 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 your remaining 20% cash balance in EFA.
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.
Some analysts will say that markets going up in the summer are driven by uninformed individual investors since many big money holders are quieter in the summer months. We are seeing some strong highs currently, which makes me concerned about what will come in the autumn.
As I said last month: The “smart money” is confident about an impending pullback, but even they don’t know exactly when it is going to occur. 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 all the best for the “dog days” of summer. Thank you for your interest in Pro-Folio USA!