WealthProtect Status Update: May 2023

We email the status of our WealthProtect System* monthly and give the probability (Low, Mid, High) of a change in status within the next two months. We also include a commentary on actions taken this month, changes in overall asset allocation, and the market in general.

System Commentary

Midcaps and Natural Resource stocks triggered out. We don’t currently have positions in those classes, so there is no affect on our models. In the past month, large cap stocks traded sideways to mildly up, while most everything else was down modestly.

Economic/Market Commentary

The bottom line on the economy is that most data points to an approaching recession, possibly even starting this quarter. Keep in mind that recessions don’t come gradually until you tip into recession. Rather, they come gradually, then all at once. This means the data slowly gets worse and then within a few months it gets really bad. We are still in the “slowly” part, and it is not guaranteed we will even have a recession. Markets are choppy and have gone sideways for the most part. Stick with your allocation, err on the conservative side for now, and call your wealth manager if you have any questions.

Thanks for your continued trust.