2013.03-FormulaicTrendingMonthlyAbstract

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PORTF5RMULAS FORMuLAIc TRENDING MONEY MANAGER

Now check out the stock market charts as a visual behind the numbers in the table above... Look at what a roller-coaster ride the typical buy-and-hold investor has experienced. Shocking!

D)-30(Dow )ones Industrials)Mar 13 2013 12:00:00

PORTF5RMULAS FaRMULAIC TRNoNc MoNEY MANAGER

14,000MO13,5OOOO13,O0OOO12,500M012,000.0011,500.0011,000.0010,500.0010,000.009,500.009,000.008,500.008,000.007,500.007,000.00

1,500.001,450.001,400.001,350.001,300.001,250.001,200.001,150.001,100.001,050.001,000.00950.00900.00850.00800.00750.00

06 07 08 09 10 11 3/1312013

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Portformulas Investing CorporationFormulaic Trending MoneyManager

SEC Registered Investment Advisor6020 E Fulton St. I Ada, MI 49301(888) 869-5994

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PORTFRMULAS FORMuLAIc TRENDING MONEY MANAGER

475O.OO4,SOOOO4,250.004,000.003,750.003,500.0045.i]3,000.002,750.002,500.002,250.002,000.001,750.001,500.001,250.00

Below is another poignant chart that illustrates how the stock market really is controlled by the individual investor. But this is never whatyou hear about in the news. In fact, you always hear the opposite... How institutions control the market... How average investors cannotinvest successfully... How hedge funds run the show... How ETFs are replacing stock and mutual fund ownership... And yet not one of thesethings is true or even close to being numerically supported. But it makes good headlines. Once again this just proves how important it is thatyou permanently remove emotion from your investment decisions. Check this out...


SEC Registered InvestmentAdvisor6020 E Fulton St. I Ada, MI 49301(888) 869-5994

www.portformulas.net

RUT-X (Russell 2000)Mar 13 2013 12:0O0OPrice History

900.00850.00800.00750.00700.00650.00600.00550.00500.00450.00400.00350.00

c.2x (Nasdaq Composite Index)Mar 13 2013 12:00:00Price History

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. :i I9 00 01 02 03 04 05 06 07 08

PDRTFRMULAS. FoRMuLAc TREND ING MONBY MANAGER

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100%90%80%70%60%50%40%30%20%10%0%

Note Hedge tur1 holdings broken out from Househokis cteaory

PORTFRMULAS FORMuLAIc TRENDING MONEY MANAGER

Notice the stats to the right of the graphic above. Households directly own 34% of the market. Then they lump in mutual funds at 20% of themarket because it is households who buy the mutual funds, for a total of 54%. Although this graphic breaks it out separately, most wouldinclude ETFs as part of households for another 4% (Im sure most are surprised that ETFs only make up 4% of the market) bringing it to 58%.Finally, some are further inclined to include pension funds (at 9%) and hedge funds (again surprising many atjust 3%) to the householdaggregate as they ultimately represent individual investors money for a total of 70%. Ill let you decide how far to take the household math,but even at its lowest reasonable calculation, the average household investor is controlling and/or directly influencing 58% ofthe market.(Note: Households influence the morket now more thon ever before, but ifthere wo s ever o time when households did not carry much influencein the market it was during the late 70 s to early 80s as yo u can see reflected in the dark blue swath in the chart above Your investment inPortformulas would be reflected in the dark blue swath as well)So what does all this really mean as we stand atop new market highs? It means that you need to continue vigilance in keeping emotion out ofyour portfolio and... Make sure that you ALWAYS know:

1)Whatyouown,2)Whyyouown itand3) What will indicate when to sell it!

Thanks for choosing Portformulas!Best of Investing,Mike Walters, CEO




Ownership OfThe Corporate Equity Market

Share ofCorporateEquily Market,/%iiAfUAi

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Sturce: Fiera1ReserBo.rc Lionshres and Goldman Schs IobaI ECS Research.

PORTFRMULAS FORMULAIC TnENoNn MONEY MANAcE

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j1 PORTF5RMULAS FORMuLAIc TRENDING MONEY MANAGER0 RAM Score is a proprietary trending tool that takes into account several dynamic components related to the U.S. markets and economy.It features a core baseline w h ic h a llow s for correlation between these multiple components so that they m ay be added together for an overallRam Score. As a trending tool, we believe that a positive RAM Score indicates that the odds are stacked in favor of equity investments and anegative RAM Score indicates that odds are stacked against equity investments.

RAM Score (13 mo) RAM Score (Lifetime) S&p 500

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MACD (13 mo)

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Moving Average (13 mo)

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Bull Bear (13 mo)

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PORTFRMULA$ FORMuLAIc TRENDING MDNEY MANAGER

0 Mapper ScoreM is a proprietary trending tool that takes into account several dynamic components related to the underlying stocksrepresented within an index. It identifies certain strengths of individual stocks contained within an index and tracks how many meet minimumrequirements. As a trending tool, we believe that the higher the percentage of qualifying stocks, the greater the strength of the overall index.(NOTE: As such, we do not believe that all stocks within an index are automatically worthy of ownership. In the FREEDOM SERIES, we seek toonly own the stocks that meet our qualification criteria. The Mapper ScoreTM illustrates how many stocks we view worthy of consideration.)

Mapper ScoreM for Dow 30Stocks Mapped = 11Mapper Score = 36.67%

Mapper ScoreM for S&P 500Stocks Mapped = 131Mapper Score = 26.20% /

rMapper ScoreM for Russell 3000

Stocks Mapped = 314Mapper Score = 10.47%

Mapper ScoreM for S&P 400Stocks Mapped = 99Mapper Score = 22.50%

Mapper ScoreM for Russell 2000Stocks Mapped = 83Mapper Score 4.15%

0 Our scoring mechanisms do not guarantee that the markets will increase when scores are strong or decrease when the scores are weak.But we believe the long term correlation may be valuable for investing... Combining our trending features of RAM Score & Mapper ScoreMwith our Portformulas intricate Formulaic InvestingM Strategies results in a uniquely logical approach to investing that is exclusively availablethrough Portformulas.

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PORTFRMULAS FaRMuLAc TRENnNc MoNEY MANAcER


SEC Registered Investment Advisor6020 E Fulton St. I Ada, MI 49301(888) 869-5994


Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar-12 12 12 12 12 12 12 13 13 13 1.__ --Mapper ScoreM for NASDAQStocks Mapped = 99

Mapper Score = 3.67%

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2013.03-FormulaicTrendingMonthlyAbstract