Oops!

I sure didn't see that coming!

In our commentary a couple of weeks ago I said, "Since almost all of our indicators suggest a strengthening economy, we doubt any serious portfolio readjustment will be required."  Since then almost all of our indicators still suggest a growing economy, but no one remembered to tell the stock market.  In fact, Atlas found it necessary to make some serious portfolio readjustments.

What did we do?  We locked in gains on a substantial number of positions, moving the funds received into a safe haven (money market).

Why did we do it?  The stock market is not the economy; their behavior can (and does) diverge, especially at crucial turning points.  It is for this reason that Atlas employs a proprietary system developed by Christopher designed to detect early warnings from our indicators suggesting something may be amiss that the economy has not begun to clearly register.  This is how market tops develop.  Since we believe it is easier to buy back an investment vehicle rather than replace cash once it is lost, we adopt a conservative approach when such signals appear.

What's next?  Currently our signals suggesting short-term market weakness remain in place.  So long as that is the case, we will keep your powder dry.  The moment they morph into patterns suggesting the market is once again supportive of higher prices, we will begin redeploying those funds into those sectors and asset classes that separate themselves out from the herd as having the highest probability of reward versus risk.  While I'll not hazard a guess as to when that will be, you will definitely be able to see it as it happens when viewing your account online or via monthly statements.  Or maybe Christopher will let me read tea leaves again someday.  (by J R)