Weekly Risk Report 7/26/2010
As of Friday the 24th of July almost all of the components of our various portfolios were at or above their 26 week moving average prices. For all the market chaos of the last two months, the moving average price shows that not much has changed in the last 6 months. This is a credit to the designers of the various closed end and exchange traded mutual funds that we use. It also speaks to the “over-reporting” of business news that seems to have come of age. The media seems to feel the need to report that the patient is now dead in between each heartbeat. They seem equally content to declare a miracle of resurrection with each new heartbeat when it arrives.
SignalPoint Asset Management has a longer time perspective than the media. Our risk assessment model helps to provide a framework of understanding the jumps and bumps of the market. This week we continue to see relatively low risk of market participation relative to our database. This week we see two components up and two down in their risk profile. The net effect was a slight rise in overall assessment of risk. Our cash reserves adequately cover the current risk profile’s requirements.
