Our Largest Current GWM Portfolio Holding - HFXAX

Catalyst Hedged Futures Strategy Fund 

 (HFXAX)

Fund Objective:

Stephen L Gerritz, CFP

Investment Policy

The Fund seeks capital appreciation in all market conditions, with low volatility and low correlation to the US equity market. The Fund invests primarily in long and short call and put options on S&P 500 Index futures contracts and in cash and cash equivalents, including high-quality short-term fixed income securities.

This fund is doing it's intended job for our portfolios. I needed to have a position in client accounts to help reduce overall volatility and to provide an effective way to generate some return in a declining market. I highlighted it's performance in my latest newsletter. It actually has a history of performing better as the market become more volatile.

Here is the how it is rated by Lipper and how it performed this last week compared to the S&P 500:

Catalyst Hedged Futures Strategy Fund

HFXAX has earned Lipper's highest rating,  5.

While the S&P 500 declined -4.90% this first week of the year, HFXAX actually managed to gain a little, +0.09%.

I am able to purchase it with NO LOAD for FOLIO Institutional accounts only. I might add that it is now closed to the general public.  I am however able to still buy it for Folio clients.

For the benefit of those that do not receive my newsletters, here is the past performance chart that I included in my January 2016 newsletter:

Catalyst Hedged Futures Strategy Fund

HFXAX 2006 thru 2012

Outstanding performance during the 2008 - 2009 bear market.

The Utilities Sector (XLU) is Holding Up Well

Stephen L Gerritz, CFP

So far the US markets have had the worst weekly performance in a very long time.

Below is a line chart showing the performance of all the major S&P Sectors year to date.

The Utilities Sector (XLU) is the only S&P sector up for the year. The Consumer Staples Sector (XLP) comes in second place with only a slight loss. Everything else is suffering large declines.

XLU is the only Equity Sector ETF that GWM portfolios continue to hold. It is helping us weather the storm .

I did sell XLP today as it has begun to weaken.

S&P 500 Daily Relative Strength Chart

Y-T-D

Stocks held in the GWM Core Equities Folio

Stephen L Gerritz, CFP

Folio IRA clients have accounts with an allocation in the Core Equities folio.

I would like to point out that Google is now called Alphabet.


These are the stocks held in the GWM Core Equities Folio. You can see that the holding are well diversified among various industries.

Symbol	Company	Industry
GOOG	Alphabet Inc Cl C Cap Stock	Google is now Alphabet
GE	General Electric Co	Misc. Capital Goods
AMZN	Amazon.com Inc	Retail (Catalog & Mail Order)
FB	Facebook Inc	Computer Services
MAS	Masco Corp	Constr. - Supplies & Fixtures
NOC	Northrop Grumman	Communications Equipment
DAL	Delta Airlines Inc	Airline
MSFT	Microsoft Corp	Software & Programming
BAC	Bank of America Corporation	Regional Banks
JPM	JPMorgan Chase & Co	Money Center Banks
KR	Kroger Co	Retail (Grocery)

If you would like further info on any of these stocks click the link below and input the stock symbol. There is a ton of info here.

http://www.barchart.com/etf/marketoverview

Hoping for the rally to continue into year-end

Stephen L Gerritz, CFP

I had mentioned in previous blog posts and newsletters that the 2011 correction and subsequent market recovery might serve a guide to what we might expect the market to do after our most recent market correction. Below I have S&P 500 charts from both 2011 market correction (highlighted by a green box) and our current (2014-2015) market snapshot. You should notice how similar the patterns are. I think it is likely that a repeat of the 2011 scenario will continue to play out. If that is the case, the market should continue it's march higher into December.

S&P 500

2011

2011 Correction & Recovery (green box)

S&P 500

2014-2015

2014-2015 Correction & Recovery (green box)

I have continued to increase our market exposure as the market has rallied. 

Recent Terror Attacks

While all terror attacks are abhorrent, history has shown that terror attacks that do not carry significant economic consequences do not have much effects on the markets. I continued to  increase our equity holdings as the French troubles played out. I have been proven right to do so.

RMD Written Request forms Mailed Out

Stephen L Gerritz, CFP

I have mailed out written RMD request forms for Shareholder Services Group IRA accounts as well as Folio RMD forms that require written signatures. Watch your mail later this week.

I will send out Guggenheim RMD form later in the week as well.

Steve

Folio Bank Link Authorization - Simple Process Explained

Stephen L Gerritz, CFP

When you log into your Folio Client  account page you will see the following screen with one item for your attention.

Please verify that all info is correct. If it is correct, click on the dot by the [I Agree] button. Then click submit.

I strongly encourage all Folio clients to do this now.  This is required by Folio to continue electronic funds deposits to your bank account when you request money.

Steve

(Click on the image below for easier viewing.)

Folio Bank Link Approval

Additional Folio Bank Link Clarification

All existing regular monthly Folio deposits to your checking account will continue just as they have in the past, no interupsions.

We will have to follow-up with re-authorization of Bank Links within a reasonable amount of time however.  The Folio Bank Link Authorization section of your Folio Client website should be available tomorrow.

I might add that this re-authorization is a one time task. Just as in the past you will call me to request money and it is deposited in your account a couple days later.