Tactical Model Update
This information was emailed to our clients on Tuesday 12/20/22. Exact advice on how to manage their accounts was uploaded to their Participant Dashboards at the same time (allowing them to manage their 401k and 403b accounts). To learn more about the Plan Confidence service, please click the “START NOW” button above.
Today our Tactical Models have been updated with new allocations. If you are using our Strategic Models, there are no changes that need to be made today.
However, if you are using one of the four Tactical Models, you should have received an email or “push” notification (if using the app) at 9am EST. If you received the email and/or “push” notification, please login to your personalized “dashboard” to view the advice.
Below is the reasoning of why the changes have been made.
Our “Tactical” models start with the same diversification as our “Strategic” models.
On a daily basis, we monitor three different “indicators” to decide if we should stay fully invested with the equity (stock) portion of your account.
When two out of three of the signals show a “negative” indicator for an extended amount of time, we move half of the stock allocations to cash.
The yellow circle above shows the S&P 500 breaching its 50 day moving average (negative indicator).
The blue circle shows MACD (moving average convergence/divergence) indicator going “negative” (the red line above the black line). This signals the S&P is losing momentum.
We also monitor the VIX (volatility index or “fear index”). However, the VIX has been above 20 (negative signal) for quite some time. The markets move up and down quickly nowadays, taking away some of the predictive power of the VIX.
Below are the current allocations for all four of our “Tactical” models.
Please login to your Participant Dashboard to see the exact funds to get your account as close as we can to your chosen allocation.
REMINDER: IF YOU ARE USING THE STRATEGIC MODELS (QUARTERLY REBALANCING) YOU DO NOT HAVE TO MAKE ANY CHANGES TODAY.
If you have any questions, do not hesitate to let me know. Feel free to reply to this email or use the button below to schedule a Zoom or phone call (no phone tag)!
As always, I appreciate you choosing Plan Confidence for your ongoing, personalized advice.
Sincerely,
Kevin T Clark, RF
CEO & Co-founder
Kevin T Clark, RF™ is the CEO and Co-founder of Plan Confidence Corporation (PCC). PCC is an SEC registered investment firm specializing in providing advice to hard-working Americans investing in their employer’s retirement plans (401k, 403b, TSP, etc). Kevin is also an ERISA Nerd and one of only a few hundred Dalbar certified Registered Fiduciaries (RF) in the United States.