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First Quarter 2017 Market Commentary

A robust start to 2017 for our Equity and Balanced portfolio strategies in January and February provided the first quarter of 2017 with good gains. March turned in mostly neutral results with the exception of the International Signal portfolio which performed well. Income strategies kept pace with benchmarks and were mostly on target with their expected income generation for the quarter. For the first quarter of 2017, the Nasdaq Composite Index rose 9.8%, The Dow 30 Industrials rose 4.6% and the S&P 500 Index rose 5.5%.

No significant change in SignalPoint’s Market Risk Indicator (MRI) occurred during Q1, 2017. While the Relative Valuation component moved toward the high end of its Neutral range, it never crossed into bearish territory. As the first quarter closed, our MRI
continued to be market neutral with all components in their respective neutral range. During March we saw some consolidation of previous gains and some narrowing of market breadth which is typical of consolidation after the quick advance we’ve seen since the 2016 Presidential Election.

The cash reserves of our SignalPoint strategies declined as a percentage of total value as the equity components moved upward. Reserves remain within the target range of the MRI’s suggested levels and market risk as we perceive it. We continue to closely
monitor the cash levels, market risk and the potential to use the reserves productively.

As mentioned briefly above, capital inflows to Exchange Traded Funds of International or Global focus moved SignalPoint equity strategies with those components to their best quarterly performance in over two years. This was a reminder that a diversified
portfolio properly managed offers good long-term performance.

While the Federal Reserve continues to discuss potential rate increases the bond and income markets seem to have gracefully anticipated such changes. Interest rates across the maturity range remain at historically low levels. The price of precious metals has risen some which suggest market participants are anticipating mild inflation.

We welcome comments and questions relative to risk assessment and performance. Please let us know if your financial situation or investment objectives have changed so we can review your portfolio. Finally, feel free to contact your advisor or me.

Sincerely,

Thomas M. Veale
Chief Investment Officer
SignalPoint Asset Management, LLC

SignalPoint Asset Management, LLC
Office Hours: 8:00 am—4:30 pm Monday—Friday
1201 E. Walnut Street, Springfield, MO 65802
Phone: 877.769.9980