Frequently Asked Questions (FAQ)
- What investment options are utilized?
- How many years are profitable?
- How often is the system invested in stocks?
- Is the program applicable to anyone in the world?
- Does this approach utilize ETFs or index investments?
- Does this program involve exotic or risky trading practices?
- What is "buy and holding" investing?
- If I subscribe, is there a starting point to help me reallocate my portfolio?
- Are there different strategies for different levels of risk?
- When did the MarketHealth® 401k Advisor initiate live trading?
- How can I contact MarketHealth LLC?
- How much does the newsletter cost?
1: What investment options are utilized
The system offers investment choices found in most 401k programs including: 1) S&P 500, 2) NASDAQ, 3) Small Cap Stocks, 4) International Stocks, 5) US Bonds, 6) Money Market Funds (cash).
Since 1970 MarketHealth® 401k has made money in 92% of the years versus 75% of the years for the S&P 500.
Since 1970, the system has been invested in stock investments only 65% of the time. Bonds and money market funds are utilized during the remaining 35% of the time.
Yes - this program can be used by anyone globally with access to the broad market indexes described in question one above.
5: Does this approach utilize ETFs or Index investments?
Yes. We use a sector rotation strategy to invest in ETFs for the broad sectors as follows. S&P 500 (SPY), NASDAQ (QQQQ), small cap stocks (IJS), International stock fund (VGTSX), a total bond market fund (VBMFX or AGG), and money market funds.
No. This approach is designed for long term investors who want peace of mind, who want to be out of the market during long term down trends and invested in the leading sector during long term up trends. We buy long only. During down markets we move to bonds or money market funds. No selling short, no options, no futures, no margin etc.
The term “buy & hold” simply means that an investor buys a stock,
and holds it for a long period of time, regardless of what happens to
the price of the stock.
8: If I subscribe, is there a starting point to help me reallocate my portfolio? If not, how long might it take for a subscriber to reallocate more or less 100% in line with the service?
The 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..
9: Are there different strategies for different levels of risk?
There is 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 adjust the risk based on what portion of your assets you invest with the strategy. This approach works for more aggressive portfolios if that is your interest.
January 1st 2005 was the start of live trading. The 401 portfolio approach was tested back to 1970 – during which time extremely diverse market conditions were experienced. The logic was also back tested on the S&P 500 back to 1900 to further stress test the strategy in nearly every type of market.
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.
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