Added Positions to GWM Model Portfolios

It is starting to look like the market is leaning towards and pricing in a stagflation scenario. I say this because one of the best performing fixed income sectors is inflation protected bonds. Additionally, the agricultural sector is holding very well in the current market sell off. I am expecting most other comodities to sell off, but ag is working, in particular sugar, wheat and corn. I took a position in a sugar ETF (SGG) today.

I took a new position in the silver ETF (SLV); it is breaking out again.

Finally, I added a couple financial sector short positions today. Under normal conditions the financial sector represents about 12% of the S&P 500. They now have a weighting of over 13%. They represented 8% during the 2008 bear market. They are so out of favor I think they have more room to fall.

I bought SEF, a 1X inverse financial ETF in the Long/Short 1X Folio and SKF, a 2X inverse financial ETF for the Long/Short 2X folio. The Director Model Folio is the only model that allows 2X investments.

Short 1X

Short 2X

I generally do not blog about all purchases and sales, but I think it is helpful to show GWM investors how we are repositioning the GWM Models Portfolios in the tough market conditions we now find ourselves in.

This blog post does not constitute an offer of investment advice. This blog is only provided for educational purposes. Please read the Important Blog Disclosure posted in the right channel bar.

How Long Will the Selling Continue?

Gil Morales, financial advisor extraordinaire, is featured on the Varney and Co. show. I think he could very well be right in his assessment of the market and the opportunities. This is the same video linked in my GWM Model Portfolio Management report posted just prior to this post.

Click the text link below to view this brief, yet timely video.

http://www.gerritzwealthmanagement.com/how-long-will-the-selling-continue/

Market Assessment --- Bull or Bear ---

Click the text link below to view my Bull/Bear assessment report and how it will effect the management of GWM Model Portfolios.

http://www.gerritzwealthmanagement.com/wp-content/uploads/2011/08/GWM-Model-Portfolio-Mangament-08-20-2011.pdf


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This blog post does not constitute an offer of investment advice. This blog is only provided for educational purposes. Please read the Important Blog Disclosure posted in the right channel bar.

The Gerritz Letter - Special Mid Month Issue Published

I have just mailed out a Special Mid-Month Issue of The Gerritz Letter. It has also been posted on the GWM website.

The bears came out in force today as nervous investors fled the market.  There were numerous negative factors, that I won't delve into now, that weighed  on the markets all day long.

Due to our defensive posture our accounts held up well over all.

I encourage you to read the mid-month issue of The Gerritz Letter. I will be discussing how I am managing accounts during this volatile period.

Sold Some Defensive Sector Holdings Today

Our Swiss Franc ETF (FXF) was stopped out today.

I also sold our gold ETF (GLD)  and our 10 year treasury ETF (IEF) today. They are currently slipping after reaching over bought levels. These type of parabolic gains are unsustainable. I am sure we will revisit these great investments again before long. I just might add that no one ever lost money taking a profit.

This blog post does not constitute an offer of investment advice. This blog is only provided for educational purposes. Please read the Important Blog Disclosure posted in the right channel bar.

Click the text link below to receive a Free Subscription to the GWM Newsletter and Gerritz InSights Blog

http://www.gerritzwealthmanagement.com/gwm-personal-por

Golden Years Up More Than In-Betweener

All GWM Model Portfolios continue to gain even as the market crumbles. Our recent analysis of the market proved not only to be correct, but very timely. Our Smart Stops risk management strategy took us out of equities early on and our Market-Direction-Model (MDM) has constrained us from re-entering equities for the most part.

Our market scanning capabilities helped us identify what was working in the market. Gold, Swiss Francs and higher quality bonds rose to the top of our buy list. I might add that due to parabolic moves up, gold and US Treasuries are getting very over valued; I will probably begin reducing these positions once again very soon.

Due to the differences in folio weightings in GWM Model Portfolios, our more conservative GWM models are out-performing our more aggressive models.

Year-to-Date performance charts for Golden Years and the In-Betweener are shown below. You will note that we are gaining daily.

* Performance reports are generated from actual client accounts housed at our lead custodian, Folio Institutional. Due to inherent constraints, performance will vary for accounts held at Pershing, Rydex and Monument Advisors.

This blog post does not constitute an offer of investment advice. This blog is only provided for educational purposes. Please read the Important Blog Disclosure posted in the right channel bar.

Click the text link below to receive a Free Subscription to the GWM Newsletter and Gerritz InSights Blog

http://www.gerritzwealthmanagement.com/gwm-personal-portfolio-management-newsletter-and-blog-signup/

Golden Years Model Portfolio YTD Performance 08 09 2011

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