As the election cycle comes to a close, the uncertainty is infecting some segments of the markets. Both US Real Estate and US Government Bonds have softened enough to generate a sell signal. Pro-Folio USA will remain invested in commodities, US stocks, and world stocks for the month of November.
The Pro-Folio USA model evaluates its holdings on a monthly basis. There are two (2) trades this month. As of the last trading day of October (31st), we have the following trade signals:
- SPY – HOLD
- EFA – HOLD
- IYR – *** SELL *** THRESHOLD: 77.86 PRICE: 76.64
- DJP – HOLD
- IEF – *** SELL *** THRESHOLD: 110.56 PRICE: 110.06
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.
It is worthy of repeating what I said the last couple of months:
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 noted: 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.
As we enter the season of Thanksgiving, I am thankful for all of you, dear readers! Thank you for your interest in Pro-Folio USA!