Don’t look now but Vanguard GNMA is up close to 2% over the last four weeks and is even on the year. Remember, half the time you’re going to hate GNMA and half the time you’re going to love it. As the market has struggled, GNMA has performed well.
The stock market has been volatile, and my RAGE Gauge is signalling increased risk in America. With an investment like GNMA, which has had no big down years in the last 15, you may be able to create some counterbalancing in your portfolio.
This month I am increasing the RAGE Gauge from 80 to 100 to reflect the increased risk in the economy. Now is the time for every investor to give their portfolio a good hard look. Try to determine if you are happy with the margin of safety you have given yourself. If not, adjust accordingly.
