Model Portfolio Allocation Changes- This Week
Models Turn Bearish
After months in a "Neutral" setting, the models have now turned "Bearish" and are making allocation changes to eliminate exposure to the stock market. The indicators are saying that the intermediate trend of the stock market is beginning to turn down and there is a significant risk of a serious drop in valuations.
The market may still stage another rally attempt within the next several weeks, but the tide seems to have turned and the major risk at this point is that of a new bear market developing ... or at the very least a deep and sustained correction to the previous bull trend.
Portfolio Changes in the Performance Xtender: The model is selling the previous 30% allocation in Large Cap stocks and placing proceeds from the sale into money market funds.
Portfolio Changes in the Max Xtender: This model is moving from a 100% exposure in Large Cap stock funds to 100% money market funds.
Model Portfolio: Performance Xtender
Model Portfolio: Max Xtender
New Model Portfolio Allocations
Model Portfolio: Performance Xtender
Model Portfolio Details
The tables below provide the percentage allocation details and mutual fund ticker symbols for investors following the Model Portfolios by using funds from either of the Rydex Investments or ProFunds mutual fund companies -- or alternatively, investors using exchange traded funds (ETFs).
'Performance Xtender'
(A model portfolio that invests selectively in stock market index funds, plus certain market sectors such as Energy, Gold and Real Estate, and in an Inverse Fund ("Bear Fund"), depending on current market trends for each type of investment. The allocation mix is designed to beat the market significantly during both bull and bear markets with only limited risk of volatility.)
| Model Portfolio Changes for this week | Rydex Funds | ProFunds | ETFs | |||
|---|---|---|---|---|---|---|
| Allocation | Ticker | Allocation | Ticker | Allocation | Ticker | |
| SELL Large Cap Fund | 30% | RYZAX | 30% | BLPIX | 30% | SPY |
| Corporate Bonds, or Money Market |
Place proceeds of sale into Money Market funds. | |||||
| New Model Portfolio Allocations | Rydex Funds | ProFunds | ETFs | |||
|---|---|---|---|---|---|---|
| Allocation | Ticker | Allocation | Ticker | Allocation | Ticker | |
| Energy Stock Fund | 20% | RYEIX | 14% | ENPIX | 20% | XLE |
| Gold Stock Fund | 10% | RYPMX | 7 % | PMPIX | 10% | GLD |
| Corporate Bonds, or Money Market |
70% Money Market Funds. ProFunds investors only should have a remaining 79% allocation in money market funds . | |||||
'Max Xtender'
(A model portfolio that invests selectively in stock market index funds and in an Inverse Fund ("Bear Fund"), depending on current market trends for each type of investment. During strong market trends ... either bullish or bearish ... the model uses up to 2-to-1 leverage to magnify returns. The allocation mix is designed to beat the market substantially during both bull and bear markets but results in a relatively high risk of volatility.)
| Model Portfolio Changes for this week | Rydex Funds | ProFunds | ETFs | |||
|---|---|---|---|---|---|---|
| Allocation | Ticker | Allocation | Ticker | Allocation | Ticker | |
| SELL Large Cap Fund | 100% | RYZAX | 100% | BLPIX | 100 | SPY |
| Corporate Bonds, or Money Market |
. | |||||
| New Model Portfolio Allocations | Rydex Funds | ProFunds | ETFs | |||
|---|---|---|---|---|---|---|
| Allocation | Ticker | Allocation | Ticker | Allocation | Ticker | |
| - | - | - | - | - | - | - |
| Corporate Bonds, or Money Market |
100 % Money Market Funds. |
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