September 25, 2015
Yesterday morning Gainplan made the decision to increase our exposure to large cap, domestic stocks in our active model portfolios. Our exposure increases to the S&P 500 were commensurate with the appropriate risk profile.
The stock market opened yesterday morning with the S&P 500 off 100 points (or 5%) since the fed decided not to raise rates during their Sept 17th FOMC meeting leading to a negative sentiment consistent with the 2008 and 2011 declines, and opening up the door for us to add exposure at what we consider to be an opportune time. This reflects our general principal, shared by the likes of Warren Buffett, to sell when others are brave and buy when others are fearful. Fear was high, the market came in, and we bought.
We anticipate the S&P 500 will try to work its way back to 1950-2000. However, if things worsen and our models become less bullish, we will adhere to strict risk management guidelines and reduce our exposure accordingly.
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