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U.S. Industrial Production Index = Increasing Total U.S. Bank Loans = Increasing Conference Board U.S. Leading Economic Index Non-Distressed U.S. House Prices = Increasing
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On the flipside, three big headline grabbers have been trumping most ofthe other economic news...
1. JP Morgan made headlines with a $2 billion trading loss... Which is a big deal, but taken in perspective (which the media seldom
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does), investors would do well to remember that JP Morgan has an equity market capitalization of $140 billion. Any way you slice it, thats a big blunder, but it in perspective it doesnt seem quite so devastating. As reported in the Wall Street Journal on Monday, May 7, 2012... French voters elected Socialist Party candidate Franois Hollande as president Sunday, choosing a national leader who has pledged to shift the burden of economic hardship onto the rich and to resolve the protracted euro sovereign-debt crisis by softening the currentprescription ofausterity. Keep in mind, the political term austerity means a policy of deficit-cutting, lower spending, and a reduction in the amount of benefits and public services provided. In other words, France wants to soften (or get rid of) austerity so that it can act like France again. Ignorance is not bliss and this
does not bode well for the Euro, the U.S. or the markets. U.S. stocks have been pushed downward on worries that Greece may yet exit from the single-currency Euro zone. And the question as to whether that will be the precursor for deeper issues in Spain and other European countries.
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While Europe, in particular, poses significant concerns and questions, most economists seem to agree that there is an unhealthy sky-is-falling emotional reaction gripping the markets and headlin..tht4s-beyonreality or likelihood. Lets hope the economists are correct. To add more confusion to this monthstrends, RAM Score refIethat7oJ7ZiI5temponents are now positive. Therefore, even though RAM declined numerically, the final subcomponent flipped to posv-Ist7nflthflias 6 of 7) with RAM Score posting a +40.58.
For more information and educational tools you can visit www.portformulas.net or speak with your Financial Advisor. Best of Investing, Mike Walters, CEO
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Next month Ill start publishing our new Index Health Tracker Portformulas Investing Corporation Formulaic Trending Money Manager TM SEC Registered Investment Advisor 6020 E Fulton St. I Ada, MI 49301 (888) 869-5994
www.portformulas.net
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Portformulas Investing Corporation Form ulaic Trending Money Manager TM SEC Registered Investment Advisor 6020 E Fulton St. I Ada, MI 49301 (888) 869-5994 www.portformulas.net
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Please note that there are a number of important disclosures that must be considered before investing in Portformulas. Please read the information and disclosures contained in Portformulas hypothetical carefully before investing. Any performance figures referenced herein are hypothetical and are not indicative of future results. Purchases and sales of securities within Portformulas various strategies may be made without regard to how long you have been invested which could result in tax implications. RAM Score General Disclosure This illustration does not represent any particular Portformula strategy nor is it intended to recommend any Portformula strategy or the RAM Score feature. The information on this page simply attempts to illustrate how our firms RAM Score Allocation Management feature operates. This feature can be applied to many Portformula models at no additional cost. RAM Score was not developed until January 201 0. Prior to January 201 0, clients were utilizing RAM Scores predecessor, RAM. Clients utilizing RAM may have had different results than clients utilizing RAM Score. RAM Score movement prior to 201 0 is hypothetical and based on retroactive application of RAM Scores indicators to market and economic conditions existing at the time. Portformulas was not managing assets prior to 2007. It is important to understand that RAM Score is only a tool designed to assist our firms management of your account. RAM Score does not guarantee any specific results or performance and even with RAM Score on your account, it is possible that your account will lose value. RAM Score moves assets into or out of the market based on various economic and market indicators. It is possible that the market will move positively while you are not invested or negatively while you are invested, resulting in losses. Any Portformula strategy may underperform or produce negative results. This illustration utilizes the S&P 500 index because it is a well-known index and provides a recognizable frame of reference. Indexes such as the S&P 500 are not publically available investment vehicles and cannot be purchased. The S&P 500 has not endorsed Portformulas in any way.
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Portformulas Investing Corporation Form ulaic Trending Money Manager TM SEC Registered Investment Advisor 6020 E Fulton St. I Ada, MI 49301 (888) 869-5994 www.portformulas.net