Celebrating a great week and taking a look at Wealth E&P’s exciting Relative Strength portfolio
April 12, 2021
Welcome to Wealth Enhancement & Preservation’s Market Minute, where we get to update you on everything that happened in the markets this past week.
It was another phenomenal week, with the indicators still pointing 40 out of 40 on our All-Weather scale, so we have been aggressive. The indices across-the-board were up anywhere between 2% to 3%.
I am going to share another one of our models with you this week, which is our Breakaway Stock Model:
It's broken up into several components, and the first we look at is the Bull-Bear Indicator. If the stocks are trending above 55, that means it is time to be invested in the market and be aggressive. If the trend line gets below 44, which has happened several times over the last couple of decades, then it's time to get out of the way and avoid the downturn.
Second to that, we have a Balance of Strength signal or “BOSS” signal:
This looks at cash versus the different U.S. economic sectors. If cash is moving up, it is a negative sign for stocks and is time to get out of the way. If cash is staying down below, it is time to be invested, so we rank the top stocks in the S&P 500 and buy the top seven. Right now, that is Viacom, Discovery, Tapestry, L Brands, Marathon, Freeport, and Invesco.
Year to date, this model is up about 15.5%, versus the S&P which is up about 9.5%, and the hedge fund index, which is up about 4%. We've been enjoying the ride and hope to continue to.
If you have any questions for us about the financial markets, please feel free to reach out. Otherwise, stay tuned for our next Market Minute next week!
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