First, is cash an asset class?
Second, a few comments about the latest economic data.
Ok, we’ve all heard that investing in to cash really isn’t investing. However, cash is considered to be an integral part of an investor’s portfolio. And it can be a significant part when the market is in decline, like what we’ve recently witnessed. Since it doesn’t really pose any capital risk, it can at times, be a great place for even a significant portion of one’s investment portfolio because it protects your money.

The risk/reward trade off works this way… the more you have in cash, the lower returns you might receive but, it beats losing money, especially when the declines are volatile and somewhat significant. Nonetheless, the All-Climate Portfolio has been mostly in cash recently due to a relatively higher risk/reward ratio. In other words, right now it is considered to be a poor time to “take on” risk in the market. This “is” the reason the All-Climate Portfolio (ACP) utilizes “inverse” mutual funds… so that it has the opportunity to profit in a falling market. Hence, the reason it maintains a “market neutral” investing process; a process whereby over time (3-5 years), it has the opportunity to be profitable in a long term rising or falling market. Although every quarter does not work this way, this last calendar quarter is a good example; the S&P500 had a negative calendar quarter and the ACP was positive.

So, bottom line, over time, the All-Climate Portfolio is expected to successfully navigate long term negative market periods and do it with its eye on the risk factor. Minimizing risk is a key factor in the active investment process; it’s really what it’s all about so this “is” the reason you have seen the All-Climate Portfolio to a great degree in cash over this last month; to minimize risk.

Second – Latest Economic Data

Seems the data has gotten worse recently, not better. We just learned that Chinese imports and manufacturing are sinking further, while deflation is deepening… that’s NOT a good thing. It’s a sign of increasing pressure on the global economy. And here in the U.S., September job growth missed estimates by a wide margin and retail sales and producer prices slumped further. It is also being reported that corporate earnings are falling at the fastest rate since the tail end of the Great Recession. Bad news has flowed from great companies as diverse as Caterpillar (CAT), FedEx (FDX), Ryder Systems (R), and JPMorgan Chase (JPM).

Then Wal-Mart Stores (WMT) stated yesterday considerably lower expectations for profits for the next couple years, causing the stock price to fall slightly over 10% in a single day! The world’s largest retailer said “sales won’t rise at all next year, while rising expenses will hurt profit.”

These markets remain volatile. The U.S. economy remains lukewarm, and overseas…Germany’s economy is faltering – with industrial production sliding, major problems at Deutsche Bank and Volkswagen – and the refugee crisis is starting to strain not only Germany’s budget, but budgets all over the European Union. Whew, that’s a lot.

The economic strain that I have been speaking of in past market commentary is building momentum. I truly believe we are still in its early stages, so it is normal to expect a lot of noise in the markets, a lot of up and down movement… and the markets sure are showing it – “volatility” remains the word of the year. The fundamental and technical developments I’m seeing validate the cautious approach I’ve been recommending since early this summer. I’m very glad the All-Climate Portfolio utilizes cash to minimize risk as well as invest into inverse positions… it makes sense and is expected over time to protect our assets. If every one of us had a 30 or 40 year time horizon, significant declines are not much of a concern, however, that is just not the case for most of us investors in our later years. So, we proceed with caution.

As always, please feel free to contact us with any questions.

Greg

**************************

Performance Disclosure

Any reference to performance and portfolio results data has been compiled by reliable third-party sources by using information we believe to be reliable but cannot be guaranteed. Performance results illustrated are net of 2.5% management fees .The fee for investment management will be based on the quarter ending value of the account for the previous calendar quarter and is payable quarterly in advance. Performance results also include the reinvestment of dividends and other earnings. Client accounts will invest in leveraged and inverse mutual funds; such funds may seek to enhance returns through the use of financial instruments such as derivatives, swaps, and options, as well as short sales. Although such instruments may improve fund returns, they also increase the funds’ risk of loss and magnify the funds’ potential volatility. Most leveraged and/or inverse mutual funds “reset” daily, meaning that they are designed to achieve their stated investment objectives on a daily basis. Due to the effect of compounding, the return for investors who invest for a period different than one trading day may vary significantly from the fund’s stated goal as well as the target benchmark’s performance. This is especially true in very volatile markets or if a leveraged fund is tracking a very volatile underlying index. Such funds are considered speculative investments and should be used only by investors who fully understand the risks and are willing to absorb potentially significant losses. Due to the increased risks of leveraged and inverse funds, portfolio’s are suitable only for investors who are able to withstand significant volatility in the value of their investment, and who do not foresee the need to liquidate their investment for at least three to five years.

Current performance may be higher or lower than the performance presented. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Changes in investment strategies, contributions or withdrawals may materially alter the performance and results of a portfolio. Economic factors, market conditions, and investment strategies will affect the performance of any portfolio and there are no assurances that it will match or outperform any particular benchmark.

Caution Regarding Statistical Measurement: Investors are cautioned that although statistical measurements may be useful when analyzing an investment, they are subject to material assumptions and limitations, and should not be used as the sole basis for making an investment decision. Favorable statistical measurements do not guarantee that an investment will be profitable or achieve an investor’s objectives.

Comparisons to Indices: The mutual funds utilized in client portfolios seek to provide investment results that, before expenses, generally correspond to the price and yield performance of their respective indices as well as utilize different types/methods of calculations.

Although The Wealth Pilot relies on and utilizes both reputable and third-party investment sources and software as well as accepted industry conventions in its reporting of performance calculations, this data has not been audited by an independent third-party source and has not been prepared to meet compliance with Global Investment Performance Standards.

Past performance is no guarantee of future results. Investing in equity markets involves risk; you could lose a significant portion or all of your original investment. All recommendations are based upon our experience and may or may not have been profitable in the past, now or in the future.

Information pertaining to The Wealth Pilot’s advisory operations, services, and fees is set forth in The Wealth Pilot’s current disclosure statement, a copy which is available from The Wealth Pilot upon request.

 

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE

11 Comments
  • Posted by 20 March 5, 2018 at 10:23 am

    cialis 20 mg how to use generic , online pharmacy for cialis .

    Reply
  • Posted by custom September 17, 2018 at 2:24 pm

    Indian http://metropoliscomix.com/ tablets for women .

    Reply
  • Posted by Rkman Tiwari November 8, 2018 at 6:07 am

    and technique to the organization, while at some aspect guaranteeing that the ability that Brin and Web web web page so recommended remained unaffected. http://quickbookstech.supportphonenumber.co/ http://quickbookstech.supportphone-number.com/ http://quickentech.supportphonenumber.co/ http://quickentech.supportphone-number.com/ http://sagetech.supportphonenumber.co/ http://sagetech.supportphone-number.com/ http://outlooktech.supportphonenumber.co/ http://outlooktech.supportphone-number.com/ http://office365tech.supportphonenumber.co/ http://aoltech.supportphonenumber.co/ http://aoltech.supportphone-number.com/

    Reply
  • Posted by Rkman Tiwari November 9, 2018 at 6:37 am

    Absolutely functional key-board. When you know somebody is on the meeting and you not check with him it might help offering him/her a awesome idea - it will be seen even if body's in the http://quickbookstech.supportphonenumber.co/ http://quickbookstech.supportphone-number.com/ http://quickentech.supportphonenumber.co/ http://quickentech.supportphone-number.com/ http://sagetech.supportphonenumber.co/ http://sagetech.supportphone-number.com/ http://outlooktech.supportphonenumber.co/ http://outlooktech.supportphone-number.com/ http://office365tech.supportphonenumber.co/ http://aoltech.supportphonenumber.co/ http://aoltech.supportphone-number.com/

    Reply
  • Posted by Kiaan Roy November 13, 2018 at 12:21 pm

    We understand their reluctance. That’s because we here at Printer recognize that conventional BYOD printing solutions are less than desirable. Some require extra devices. Some are one-trick ponies that aren’t guaranteed to play nicely with all the other hardware and software in your print environment. Others are finicky, calling for cumbersome workarounds that introduce critical vulnerabilities. In an effort to accommodate your employees’ BYOD demands, you end up exposing them to more frustration, inconsistency, and even potential security risks. https://www.customersupportcare.com/hp-printer-support.html https://www.customersupportcare.com/canon-printer-support.html https://www.customersupportcare.com/epson-printer-support.html https://www.customersupportcare.com/xerox-printer-support.html https://www.customersupportcare.com/kodak-printer-support.html https://www.customersupportcare.com/brother-printer-support.html https://www.customersupportcare.com/lexmark-printer-support.html https://www.customersupportcare.com/samsung-printer-support.html https://www.customersupportcare.com/dell-printer-support.html https://www.customersupportcare.com/ricoh-printer-support.html https://www.customersupportcare.com/panasonic-printer-support.html https://www.customersupportcare.com/kyocera-printer-support.html

    Reply
  • Posted by Kiaan Roy November 14, 2018 at 11:47 am

    Issues leading to damage as well as corrupted printer drivers installed is the cause of error code 41. Users while experiencing this issue should entirely remove the printer drivers installed in the system with the device manager and reinstall the printer drivers. https://www.customersupportcare.com/hp-printer-support.html https://www.customersupportcare.com/canon-printer-support.html

    Reply
  • Posted by Kiaan Roy November 14, 2018 at 11:47 am

    Call us at Printer Customer Support Number for prompt replies to all your issues right at your desk. We are easily approachable by users 24 hours to bring them world-class support solutions at their desk while ensuring that they are highly effective for future purposes. So, feel free to call us anytime and get your problems fixed up in just one call. https://www.customersupportcare.com/epson-printer-support.html https://www.customersupportcare.com/xerox-printer-support.html

    Reply
  • Posted by Kiaan Roy November 14, 2018 at 11:47 am

    we will definitely show you solutions to get rid of this error code but first the question here arises that do you get any ink cartridge message which says that it needs to be replaced or is it the case where you keep printing until the cartridge runs completely dry? https://www.customersupportcare.com/kodak-printer-support.html https://www.customersupportcare.com/brother-printer-support.html

    Reply
  • Posted by Kiaan Roy November 14, 2018 at 11:47 am

    Solution 1: The first and is the best method ever is to have a thorough check of the printer’s warranty. If you have less than a year warranty period then, just go to the Printer Support professionals and get them to fix or replace the printer if needed https://www.customersupportcare.com/lexmark-printer-support.html https://www.customersupportcare.com/samsung-printer-support.html

    Reply
  • Posted by Kiaan Roy November 14, 2018 at 11:48 am

    Remove all of the ink cartridges from the printer device and gently clean up the contacts on the printer as well as on the cartridges. Unplug the printer device while leaving it at rest for 10 – 20 minutes. Plug in the printer and wait for the message to insert a new cartridges on the screen. Now, replace if any found, install all of the inks back in the printer. If still the issue persists then, the problem lies with the print head and there is a need to replace it. https://www.customersupportcare.com/dell-printer-support.html https://www.customersupportcare.com/ricoh-printer-support.html

    Reply
  • Posted by Kiaan Roy November 14, 2018 at 11:48 am

    Sometimes foreign objects are the main cause of these kinds of issues that encounters due to dust particles, staples or paper that are lodged inside the machine and cause this error code to happen. So, here simply unplug the printer and check for any kind of defective print head. One can also work with the air duster to gently blow any objects from inside the printer completely. https://www.customersupportcare.com/panasonic-printer-support.html https://www.customersupportcare.com/kyocera-printer-support.html

    Reply

Leave a reply