Q - Why do you trade only once a month?
A - Our research showed trading either more frequently or less frequently delivered lower returns with more volatility.
Q - Do you ever have a large cash position in the portfolio?
A - We will never invest 100% in one asset class. Therefore, if our model only shows one asset class as a buy then we will hold 50% in cash for that month.
Q - How many months during the year will the portfolio change?
A - On average, we expect four times a year.
Q - Does the portfolio make money every month?
A - No portfolio can make money every month. We anticipate but cannot guarantee that we will make money approximately 8 months per calendar year.
Q - What stocks do you buy?
A - We buy the S&P 500 not individual stocks.
Q - Why do you buy long term bonds?
A - We are not holding the bonds until maturity so the length of the bonds is not an issue. We are purchasing bonds when we think the price will go up giving us a capital gain along with the interest income.
Q - Am I diversified when you buy the S&P 500?
A - Yes. It is a common misconception that holding a lot of mutual funds or stocks gives you diversity. In reality all stock mutual funds and stocks behave relatively the same.
Q - Why would I want to own Gold?
A - Because there are times that gold is the only asset class rising.