Coping with Risk — 12 Varieties to Worry About

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SYNOPSIS
For the week, our regularly reported indexes rose again. Canadian stocks are show some definite improvement now. the S&P/TSX Composite Index was up 3.3% last week, bringing it to the top of our rankings based on trend. By contrast, Canadian small caps are trailing the rankings, with the US indexes in between. Nasdaq had a nice gain of 2.7% last week.

ProfiTrend Portfolio… The annualized growth rate for the ProfiTrend Portfolio is now at +79%… well above the comparable numbers for the S&P/TSX Composite Index (+16%) and the S&P 500 (+10%).

State Street Investor Confidence Index… The latest results for January are included in this issue, hot off the presses from the January 27 release date. The latest reading continues to favour stocks over lower risk assets. While the global index fell slightly, due mainly to declines in the European and North American markets. Equity holdings in Asian increased modestly.
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PTA 2015… Renewal Time… Early Bird Special!
We’ve increased the annual ProfiTrend Advantage 2.0 Membership Fee to $149.95; but are offering an Early Bird Special Offer to lock in the 2014 rate of $99.95 for another year. The offer expires this coming weekend… specifically January 31. So, regardless of when you first signed up for our services, take advantage of our $50 discount. Your anniversary (renewal) date doesn’t change, so even if you joined us in June 2014, an early-bird payment of $99 now will take you to June 2016. Use this link now!

Topic of the Week… Coping with Risk — 12 Varieties to Worry About
Every stock purchase requires a certain amount of risk, but many investors tend to just think in terms of the risk that the stock price will fall, not rise. But that begs the question… what could be responsible for a stock price falling? This week delve into12 types of risk, and why the standard suggestions for coping with those risks are inadequate for the 21st century investor.

Seasonality… You’ve already read about the January Effect in a previous issue; but are you also aware of the January Barometer? This is one of a small handful of conditional calendar effects. Most seasonality effects tend to repeat on a regular basis… annually, monthly, every four years, during repeating holiday periods, etc. A conditional calendar effect essentially says… If X happens during a certain time period, then Y happens during a different time period. The January Barometer says that if stocks end lower during the month of January (as measured by DJI or S&P500), then stocks will end the year lower. Is that really true? You’ll find out in this week’s TrendWatch Weekly.

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