Master Achievement

The start of 2010 began with an upside move to the markets but this was unsustainable.  While many political issues spooked the market with talk of increasing taxes on banks and excuses throughout the State of the Union address.  The economy seemed to be a scrapegoat for portfolio managers to sell out their positions.  The financial markets are not cheap for this economy following the significant upside move from March to December 2009.

Updating the asset ETFs in the portfolio, they still have positive returns averaged over the 3, 6 and 12 nonths periods.  However, the downturn during the final two weeks of january moved the top five ETFs below their 100-day moving averages.  this is a warning sign that volitility may be returning to the market.  Following the rules, you should move to 100% Cash or Money Market accounts throughout February.  We will update the FOF Portfolio in March after the markets have time to get through their correction.

February 2010 Update - Master Achievement

Rules for FOF Portfolio

1. Rank the 12 asset classes by taking an average of each Funds 3-month, 6-month and 12- month performance.  The sort with the highest average at the top of the list (see table).
2. Evaluate the top 5 Funds on the ranked list to ensure each Fund is trading about its 100-day simple moving average.
3. Invest 20% of your portfolio in each Fund ranked 1 to 5 and above its 100-day trading price based on last closing price.
4. in the event that a Fund is trading below its 100-day price, do not invest in that Fund.  there may be a period when you are not 100% invested due to market volitility.  This is part of the strategy of keeping your money out of a dangerour market to prevent loses (I.E. 4th quarter 2008).

Click here to see original Fund of Funds Portfolio.