On Friday I was in the studio at Bloomberg Radio with Kriti and Matt and had a blast. I get a lot of media hits, but this could be worth a listen (I refer to the FED PIVOT as our best imaginary friend). Link here: Markets, Layoffs, EM, and Goldman. On the markets, although skeptical about a long term advance, we’re back in and satisfied with the trades into US Stocks last week due to down days on Weds and Thursday!
Our trend-following algorithms moved us back to a fully invested position in our US Stock Allocations last week. That trade began on Wednesday and concluded on Friday. That puts us into a fully invested posture across our equities and High Yield Bond Portfolios. We’ve been fully allocated to Developed International Stocks this year and moved into HY Bonds two weeks ago.
The market began the week approximately 4.96% above its put strike price in our Managed Risk Model (we rolled the leap on SPX Futures lower at year end). As we move higher above this Put, gain potential relative to the market may increase.
Current Positions:
High Conviction Tactical Models*1:
Developed International Stocks: 100% Invested
High Yield Bonds: 100% Invested
US Stocks: 100% Invested
Investment Grade Bonds: 100% Cash Equivalents
Managed Risk: Approximately 4.92% out of the money (LEAP on SPX Futures Put strike price)
Equity Portion of Defensive Alpha Models*:
100% Bullish Posture†
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(1)These include the Toews Capital Preservation, Balanced, Balanced Income, Balanced Growth, Growth, and All Equity, High Income, Balanced Income, and Conservative Income portfolios. They do not reflect the allocations of these strategies that are not allocated to Toews Funds.
(*)Exposure to vehicles invested in the listed asset classes
(†)Approximate Defensive Allocation