A Three- and Five-Year QPP Analysis Of The New Normal Portfolio

"New normal" is a term coined by the brain trust at the giant bond fund PIMCO.  Bill Gross is frequently given credit for coming up with this term as a way to underscore a change in the expected growth of our economy and investment markets.  "New Normal" is another way of stating that growth is slowing so prepare for it.  One way we prepare is to reset the default setting in the Quantext Portfolio Planning (QPP) software from 8.3% down to 7%, and that may be too high.

In response to the "New Normal" idea, Bob Warasila built the following portfolio as a response to anticipated slower growth.  Bob has mentioned many times on ITA Wealth Management that this NN portfolio is defensive in nature.  When the market booms, the NN portfolio falls behind the benchmarks, and conversely, when the market declines, the NN portfolio gains ground on the VTSMX benchmark.  In the following screenshots Platinum members will see a three- and five-year QPP analysis of the NN portfolio.  These are the latest tickers and percentages for the NN portfolio.

This material is not available for printing elsewhere on the Internet.  Permission to publish this data granted by Bob Warasila.

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Bullish Percent Indicators Show A Stronger Market

Regardless how one might perceive the market this past week, the Bullish Percent Indicators are telling us the overall market is stronger.

Major indexes:  The S&P 500 turned the ball over to the offensive team.  More large-cap stocks are showing up with positive bullish point and figure graphs.  The only index not on the offensive is the NASDAQ 100.  Keep in mind that I am using the percentage setting, not the arithmetic or traditional setting when generating these values.  Check the numbers to see if they increased or decreased.

The second table shows the ten sectors for which we have data.  Again, I used the percentage setting, not the traditional setting.

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