In the Days of Donald Trump as president, where America is Always First and he followed through by putting Tariffs on pretty much everything China sells, we wanted to review a portfolio offered with the name of “The America First Investor Portfolio“ who according to the website promoting it (talking-points.com) is “designed for investors who are serious about achieving high, sustainable growth with their investment capital. It applies sound principles of diversification and trending analysis to reduce risk and accumulate wealth. We show you how to trade the funds in our portfolio using a proven system of sector rotation.” That’s Gibberish. The funny thing is this that this was not an actual portfolio but a newsletter that pretty much was trying to dupe people into paying a monthly subscription. Funnier than that, this is from back in 2002 (well before Trump became president and popularized the “America First” concept).
| Portfolio Cumulative Return vs. S&P; 500 | |
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More from the website “From its inception on January 2, 2002 to Dec 29, 2006 the America First Investor Portfolio gained significant equity a solid +249% using the sector rotation strategy. During that same time period, a buy-and-hold strategy with the S&P 500 Index gained +25% On an annual basis, the America First Investor Portfolio shows steady equity growth (even during bear markets) and accelerated growth during bull markets.“ |
I didn’t like the tone of the newsletter advertising this service and now that I see these hyper inflated optimistic numbers, I can tell you I hope nobody reading this ended up investing on this. Before I go on, let me give you the ending of this story. This portfolio collapsed and is no longer part of any news letter.
You might think in hindsight it’s 20/20 and you’d be right, but I’m showing you this so you can see that there’s all sorts of junk out there begging you for your money. If it sounds too good to be true, then it’s definitely NOT true. I’ll let you read the rest of the sales pitch but I hope the lesson learned here is, don’t be duped by fancy wording and promises of high returns.
Here’s straight from the newsletter sales pitch:
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Asset Allocation & Sector Rotation – The Key to Long-Term Success!
In 1990, Dr. Harold Markowitz won the Nobel Prize in Economics for his ground-breaking discovery of the math behind the Asset Allocation theory. Although many of the concepts used by Dr. Markowitz are hard to understand, he won the award because he showed how investors can master uncertainty and, at the same time, generate excellent investment results. America First Investor combines the proven theory of Asset Allocation with Sector Rotation to produce a strategy that generates a higher ratio of return to risk. Watch your investment dollars compound and enjoy the satisfaction and peace of mind that comes from knowing you are using a system that has the highest statistical probability of long-term success.
They will be useful even in higher education.
- Allocation of capital is made between six different ProFunds: U.S. Government Plus ProFund (GVPIX), Precious Metals UltraSector ProFund (PMPIX), Short Small-Cap ProFund (SHPIX), Technology UltraSector ProFund (TEPIX), UltraJapan ProFund (UJPIX) and Money Market ProFund (MPIXX).
- Reallocation signals are given the night before. Trades are then placed the next day. You do not need to watch the market!
- The frequency of reallocation is typically three times a month.
- The entire account is evenly distributed among current open funds. If there are no open funds, the account is in the Money Market ProFund (MPIXX).
- If there is only one open fund, half of the account stays in the Money Market ProFund (MPIXX). The portfolio is never fully invested in one fund to minimize any drawdown exposure.
- Funds are purchased only when they have established confirmed uptrends. No attempt is made to time market tops and bottoms.
- Trailing stops are used to capture profits and limit losses.“
This article was written by WeAreSEOguru
