Current Recommendations

try these out Model / Changes / Holdings careprost made in usa As of 12/16/19
Tactical Fixed Income
Sell iShares Floating Rate Bond ETF (FLOT) (20%)
Buy VanEck Vectors High-Yield Municipal Index ETF (HYD) (20%)
Holdings: BAB, CWB, HYD, SRLN, VCIT
+0.3% wk +6.6% ytd
Global Multi-Asset Income
Most recent allocation changes as of 11/11/2019
Holdings: DEM, IDV, SDY, SPHD, USMV
+1.0% wk +4.8% ytd
Factor Rotation
Sell AlphaClone Alternative Alpha ETF (ALFA) (33%)
Buy Invesco S&P 500 High Beta ETF (SPHB) (33%)
Holdings: MOAT, SPHB, VLUE, Cash (1%)
+0.5% wk +10.6% ytd
Sector Rotation
Most recent allocation changes as of 11/4/2019
Holdings: ITB, IYG, XPH, XSD
+1.8% wk +6.7% ytd
International Rotation
Most recent allocation changes as of 12/9/2019
Holdings: DFE, DXJ, EWD, EWT, IDV
+2.6% wk +0.0% ytd

 

Note: New recommendations recorded at the closing price on the day recommendation is made. You may place trades as soon as you receive this update. 

Commentary
Rates Remain Unchanged in December

The Federal Reserve left rates unchanged at the conclusion of its December meeting last Wednesday (12/11/2019). The Wall Street Journal reports that the Fed has indicated it could leave rates unchanged from current levels through 2020 so long as the economy does not deviate much from current expectations. Inflation has remained low, so the Fed still appears comfortable with more rate reductions in the event that the economy does worse than expected. The Fed also appears willing to increase rates in the event of better-than-expected performance.

It’s not only the U.S. economy that the Fed looks at, however. The global economy has its own significant impact on what happens within the U.S., and recent data appear to indicate global economic growth may be stabilizing. The Journal reports, “Global economic growth steadied in the three months through September, as output in the Group of 20 leading economies expanded at the same rate as in the second quarter.” Governments and monetary authorities around the world have provided stimulus in 2019 to support economic activity, including the Fed, which cut rates three times this year.

The eurozone remains a concern, though. Economists at the European Central Bank (ECB) estimate growth of 1.1% for 2020. The Journal also reported that “Eurozone factories have seen their overseas sales slow sharply since early 2018, partly reflecting a global cooling of trade linked to an exchange of tariff increases between the U.S. and China.” Even so, ECB President Christine Lagarde has not indicated that more stimulus will be provided beyond what was laid out in September.

Tactical Fixed Income rose 0.3% last week. The worst-performing holding was the iShares Floating Rate Bond ETF (FLOT), which rose 0.08%. The best-performing holding was the SPDR Blackstone/GSO Senior Loan ETF (SRLN), which rose 0.45%. This week, the strategy sold the iShares Floating Rate Bond ETF (FLOT) and bought the VanEck Vectors High-Yield Municipal Index ETF (HYD).

Global Multi-Asset Income rose 1.0% last week. The worst-performing holding was the Invesco S&P 500 High Dividend Low Volatility ETF (SPHD), which fell 0.09%. The best-performing holding was the WisdomTree Emerging Markets High Dividend Fund (DEM), which rose 2.9%. There were no changes to the strategy this week.

Factor Rotation rose 0.5% last week. The worst-performing holding was the AlphaClone Alternative Alpha ETF (ALFA), which fell 0.28%. The best-performing holding was the iShares Edge MSCI USA Value Factor ETF (VLUE), which rose 0.88%. This week, the strategy sold the AlphaClone Alternative Alpha ETF (ALFA) and bought the Invesco S&P 500 High Beta ETF (SPHB).

Sector Rotation rose 1.8% last week. The worst-performing holding was the iShares U.S. Home Construction ETF (ITB), which fell 0.2%. The best-performing holding was the SPDR S&P Semiconductor ETF (XSD), which rose 3.81%. There were no changes to the strategy this week.

International Rotation rose 2.6% last week. The worst-performing holding was the WisdomTree Japan Hedged Equity Fund (DXJ), which rose 1.07%. The best-performing holding was the WisdomTree Europe SmallCap Dividend Fund (DFE), which rose 3.68%. There were no changes to the strategy this week.

 

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