June 30, 2016

Market & Model update and looking forward – June 2016

“These are the times that try men’s souls…” ~Thomas Paine.FINAL_MONSONOFFICEPHOTOS-3

As many of you have probably heard, “Brexit” happened yesterday. This has caused a spike in volatility ~  a flight to safety ~ around global markets and a lot of concern as to what exactly it means.

Mutual fund managers, of course, are recommending you keep your long-term vision which I agree with, but one of the reasons I went independent is so I could make decisions on behalf of my clients.

Therefore, in my view, with the significant spike in volatility and the unknowns at this moment, the risk is to the downside. As we know, markets often overshoot significantly, in light of this I have made the following changes to the portfolio.

  • High Yield Bond –  Reallocated 50% of each portfolio holding into Cash
  • Momentum –  Reallocated 50% of each portfolio holding into Cash
  • International –  Moved to a 100% cash position.
  • Moderate – Sold 100% of American Funds Growth Fund of America; remaining holdings unchanged.
  • Conservative – Reduced American Funds Balanced Portfolio fund by 15%, remaining holdings unchanged.
  • Growth – Reduce American Funds Growth Fund of America to 20% Reduce Ivy Science & Technology to 20%, remaining holdings unchanged.
  • Aggressive Growth – Reallocated 50% of each portfolio holding into Cash

I would like to reiterate that my money is invested in the models and I am managing each model the way I would want it to be done.

Thank you for your continued trust. It is likely that this move will last no more than 2 to 3 weeks before we are back fully invested. I’ll keep you apprised as those changes occur and things become more clear.
Kind Regards,

          Eldon