Introduction

This blog is being started to give you a brief overview of recent developments in the market and how they may effect your portfolio. New entries will be posted approximately once per month .

Currently the S&P 500 (the most commonly used benchmark to determine market position) is recovering from a decline in late October and is at its highest point for this year. However, it is still approximately 30% below the high point in October 2007.

The activity in late October this year triggered signals to be more cautious and reduce risk. This is done by setting minimum price levels and then paring back or closing out the weakest performing issues when they go below these levels. Funds generated from these sales are kept in money market accounts until the indicators reverse up and call for a more aggressive investing approach.

Preserving and protecting your assets is the first priority of my advisory service. The actions I took to establish alerts to sell assets were put in place to protect your portfolio from the major losses that can take years to recoup. (The market decline of 58% from Oct. 2007 to March 2009 is a recent example.) Most of the alerts levels were not violated and so only a limited number of sell orders were implemented. Although the market has moved up since the beginning of Novermber and is making new highs, key risk management indicators show that it is still not time reinvest the funds from those sales.

You will hear from me, individually, when investment action needs to be taken.