Frequently Asked Questions (FAQ)
1. Is this a newsletter or an advisory service? 2. What type of investment strategy is utilized? 3. Do you invest in mutual funds, ETFs or individual stocks? Also, what is an ETF? 4. What investment options are utilized? 5. How is the 401k newsletter different than the global newsletter? 6. Does this program involve exotic or risky trading practices? 7. How frequently are trades made typically? 8. How often is the system invested in stocks? 9. What percentage of the years has been profitable? 10. Is the program applicable to anyone in the world? 11. What is "buy and holding" investing? 12. How is the higher return with lower risk possible? 13. Is this an aggressive or conservative approach? 14. How do we decide conceptually when to enter and exit the markets? 15. What is the secret to keeping losses small? 16. The markets can move quickly – how frequently are potential sell signals considered? 17. Do you forecast the market? Why or why not? 18. How is this different than momentum investing? 19. Can this approach make money in up markets and down markets? How? 20. Has this strategy been tested in diverse environments over many decades? 21. When did the MarketHealth® newsletter portfolios initiate live trading? 22. Are there different strategies for different levels of risk? 23. If I subscribe, is there a starting point to help me reallocate my portfolio? 24. How can I contact MarketHealth LLC? 25. How much does the newsletter cost?1: Is this a newsletter or an advisory service?
We offer 2 successful investment newsletters for long-term investors. The newsletters trade just a few times per year - in your existing account(s). We are not an advisory firm.
We invest in easy to trade ETFs and mutual funds with a long term approach. Our SECTOR ROTATION STRATEGY invests in the leading sector during healthy long-term stable up trends. During periods of riskier market environments our ASSET PROTECTION STRATEGY invests in safe have investment sectors to protect hard earned profits. This dual strategy creates a powerful impact on your portfolio – allowing your profits to compound faster.
The 401k newsletter portfolio utilizes in either mutual funds or ETFs. The global newsletter utilizes ETFs only. We never recommend more risky individual stocks – only broad sectors described in the next question.
ETF means Exchange Traded Funds. They are traded like stocks - by any stock broker – at any time during the trading day. ETFs typically track the indexes of entire markets, broad sectors, or industry niches.
The 401k newsletter offers broad investment choices found in most 401k programs including: 1) S&P 500 index, 2) NASDAQ stock index, 3) Small Cap Stock index, 4) International Stock index, 5) Bonds, and 6) Money Market Funds.
The global newsletter also contains the 401k portfolio choices, yet adds more aggressive choices including: 1) an emerging markets ETF, 2) a natural resource ETF, and 3) a gold ETF. These additional sector options offer additional upside performance and additional safe haven choices for our portfolio.
5: How is the 401k newsletter different than the global newsletter?
The biggest difference is that the 401k newsletter portfolio is suitable for retirement and other conservative accounts, while the global newsletter portfolio is suitable for discretionary, more aggressive investment accounts. Both newsletter portfolios use the same strategies discussed above – simply applied to potentially different investment sectors.
No. This approach is designed for long term investors who want peace of mind. We buy "long" ETFs or mutual funds only. There is no selling short, no options, no futures, no margin etc.
These are long term strategies to outperform the market over the long term. Typically we only trade 2 times per year for the 401k newsletter portfolio – only 5 times annually for the more aggressive global newsletter portfolio.
At times we have stayed in same position for multiple years, while at other times we have changed several times in one year. We monitor our model portfolio positions daily and will issue a sell signal at any time if required.
8: How often is the system invested in stocks?
Since 1970, the system has been invested in stock investments only 65% of the time - during long term stable up trends. Bonds, gold, and money market funds are utilized as safe haven investments during the remaining 35% of the time - during unhealthy market periods. By being out of the market 1/3 the months, we also lower our exposure to “global event risk” by 1/3.
9: What percentage of the years has been profitable?
In testing since 1970 the 401k portfolio has made money in 92% of the years versus 75% of the years for the S&P 500. The results are similar for the global portfolio.
Yes - this program can be used by anyone globally with access to the market indexes described above.
The term “buy & hold” simply means that an investor buys an investment, and holds it for a long period of time, regardless of what happens to the price of the stock.
The MarketHealth® approach has 23% less risk (volatility) than the S&P 500 while outperforming it significantly.
Every investment has risk. For a buy and hold investor, a higher return typically means higher risk. The higher return investments typically go up faster during up trending markets, yet they also fall much faster during down trending markets. Our approach is different as we sell stocks and move to safe haven stocks very early in the down trend. We typically are out of stocks 1/3 of the time - which reduces volatility significantly and keeps losses small.
Again, during up trending markets, our Sector Rotation Strategy moves us into the leading stock sector which is higher risk and higher returns. Yet over time, we have lower risk and higher returns because of our Sector Rotation and Asset Protection strategies working together.
Both. During lower risk environments with healthy markets, our MarketHealth® strategies will invest in the leading stock sector such as international stocks, NASDAQ and small cap stocks. Some may call this aggressive – yet we do this only during lower risk time periods. This is Sector rotation strategy.
During economic crisis and market down trends, our Asset Protection Strategy moves to safe haven investments to protect the value of our investments. Some may call this conservative. Combined, these strategies have been very successful in both up and down markets – outperforming the S&P 500.
Short term trends are much more volatile while long term trends are more stable in nature and easier to follow. The Sector Rotation Strategy invests in the leading sector while it is in a long term stable up trend. A non emotional disciplined approach is used to determine the entry and exit points. We tend to exit downtrends early to avoid large losses – this is critical to our long term success.
Our Asset Protection Strategy seeks safe haven investment choices early in a down trend to preserve our hard-earned profits. This allows portfolios to compound faster during the next up trend.
Daily. We utilize a long term approach, yet we realize markets can move quickly. We monitor our model portfolio positions daily and will issue a sell signal at any time if required.
Forecasting correctly, repeatedly, over the long term is nearly impossible. For example, it is risky to guess where the market bottom while it is in a down trend. Many experts predicted the 2008/2009 decline would stop at 20% - yet it declined 50%.
Our approach uses no forecasts – meaning we react to the current market reality. If a long term up trend forms, we invest in the leading sector. Similarly, if unhealthy volatility occurs, or if a long term down trend occurs we move to safe haven investments. We do this regardless of what we think or forecast. Why? We don’t want to be invested in stock sectors when there is a long term down trend.
The strategy is different than momentum investing and is difficult to “label” in traditional terms.
Momentum investing typically involves buying the strongest performing sector and periodically switching to ensure it is invested in the strongest sector. Typically, these investors are invested in these leading sectors during market downturns and experience significant downside risk because leaders during up markets tend to fall further and faster during down trends. Quite often, momentum investors switch rather frequently using short term time horizons to base their decisions.
The MarketHealth® approach does utilize a Sector Rotation Strategy which rotates into the strongest sector – however this is only used in lower risk environments with long term, stable up trends. The longer term time frames and the utilization of filters to only use this strategy during long term and stable up trends are differentiating factors that are critical to our success. Also, our Asset Protection is quite different as explained above.
Yes, since we seek safe haven investments early in a down trend, we typically make profits during market down trends. Again, in testing since 1970 the 401k portfolio has made money in 92% of the years versus 75% of the years for the S&P 500. The results are similar for the global portfolio.
Our Sector Rotation and Asset Protection Strategies have been tested back to 1970 as a 401k portfolio. We tested the strategies in diverse environments of the 1970s, 1980s, 1990s, and since 2000. The strategies successfully worked in times of slow growth and high inflation, high growth times, recessions, natural disasters and wars.
The global newsletter portfolio has been extensively been tested since 1995. The emerging markets, natural resources and gold sectors of this portfolio help to increase returns in up and down markets.
January 1st 2005 was the start of live trading for the 401k newsletter portfolio – while the global portfolio began live trading in early 2010.
Each newsletter has one published portfolio based on broad sectors. Trades are made via ETF or index funds. The strategy moves 100% to the leading sector during healthy markets in stable long term up trends. During unhealthy markets we move 100% into either bonds or money market funds. This approach has less volatility than owning stocks 100% of the time, yet outperforms the market significantly. The model portfolio is based on 100% investment in a single broad sector. You can invest whatever portion of your assets with these portfolios.
The 401k model portfolio changes investments twice a year on average. The most conservative approach would be to wait until a new recommendation is made - another approach is to phase in over a 4 to 6 month period to the existing recommendation.
If you have a question or suggestion, please email us at Support@MarketHealth401k.com. Due to the heavy volume of emails we receive, our support staff may not be able to respond to your email immediately, so please allow 24 to 48 hours for a response.
The 401k newsletter costs only $47 for a six month subscription and can be purchased on a month to month basis if desired. The global newsletter offers a higher return for only $36 a month billed every 6 months. Click on the "guarantee" link below to see about our 100% full refund - with no questions asked.