The US stock market appears to be expecting a “Trump effect” from his upcoming administration, hitting an all-time high in recent weeks. Similarly, commodities have moved higher, perhaps an indication that the markets expect increased consumption of gold, petroleum, grains, and construction materials. In contrast, global markets ex US dipped enough to trigger a sell signal for EFA. Pro-Folio USA will remain invested in commodities and US stocks (only) for the month of December.
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 November (30th), we have the following trade signals:
For existing investors:
You should have spent the month of November invested equally in the above 3 holdings marked HOLD or SELL. Now, sell your position 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.
So far, the “smart money” which has been predicting an impending pullback in US stocks, has been wrong. Of course the hardest part is the timing – say we do see a pull back in 12 months, does that mean they were right? How about a pull back in 24 months?
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 last month of the year, I wish you joy, peace and hope, dear readers! Thank you for your interest in Pro-Folio USA!