Tactical All Asset Model – Relative Strength Leadership Trends: Utilities, Fixed Income, Muni Bonds, Gold and Cash are showing the strongest relative price strength:
- 18% of our Tactical All Asset Strategy is positioned in Utilities (approximately 9% each to “XLU” and “VPU”).
- Overall, the portfolio is defensively positioned and growing increasingly more defensive. This past week, we further reduced equity exposure: our 9% REIT position traded into a bond 3-7 year Treasury bond ETF (“IEU”). Our 9% SPY positioning trading into the iShares Gold Trust “IAU”.
- Current weightings are reflected in the chart below.
- The remaining four ETF positions are in equity-oriented funds (“PPA”, “PEK”, “QQQ”). They are approaching potential trade dates over the next four weeks.
Overall, we continue to see the strongest relative strength price leadership in more defensive asset categories.
The current opinions and forecasts expressed herein are solely those of Steve Blumenthal and are subject to change. They do not represent the opinions of CMG. CMGs trading strategies are quantitative and may hold a position that at any given time does not reflect Steve’s forecasts. Steve’s opinions and forecasts may not actually come to pass. Information on this site should not be used as a recommendation to buy or sell any investment product or strategy.