Current Recommendations

Model / Changes / Holdings As of 9/30/19
Tactical Fixed Income
Most recent allocation changes as of 9/16/2019
Holdings: BAB, BIV, BND, SRLN, VCIT
+0.1% wk +6.5% ytd
Global Multi-Asset Income
Most recent allocation changes as of 9/16/2019
Holdings: GLDI, SDY, SPHD, USMV, VNQ
-0.1% wk +3.1% ytd
Factor Rotation
Most recent allocation changes as of 9/16/2019
Holdings: ALFA, MOAT, VLUE, Cash (1%)
-1.8% wk +2.2% ytd
Sector Rotation
Sell iShares U.S. Medical Devices ETF (IHI) (25%)
Buy Utilities Select Sector SPDR Fund (XLU) (25%)
Holdings: ICF, ITB, XLU, XSD
-1.1% wk -0.5% ytd
International Rotation
Most recent allocation changes as of 9/23/19
Holdings: ASHR, DXJ, EWN, EWT, GREK
-1.1% wk -7.6% 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
Economic Data Show Tepid Growth, Along With Small Signs of Improvement

The Wall Street Journal reports that economic data for the month of August showed tepid growth within the U.S. economy. Household spending increased by only a seasonally adjusted 0.1% in August compared to an average monthly increase of 0.5% over the first seven months of the year. Spending by businesses did not seem to be doing much better. Orders for long-lasting equipment and machinery declined 0.2% in August from the July level.

Not everything was gloomy, however. The University of Michigan’s Consumer Sentiment measure showed a reading of 93.2 in September, above the 89.8 it was at in August. Still, the September reading was 6.9% below the September 2018 level. Incomes were 0.4% higher in August from the previous month.

Inflation remained muted in August. The Journal reports that the personal-consumption-expenditures price index increased by a seasonally adjusted 0.03% in August from the previous month. Excluding food and energy, the index increased by 0.14%. Year over year, the index was up 1.44% in August, and up 1.77% when excluding food and energy. Inflation is still below the Fed’s 2% target rate despite the low unemployment rate and recent interest-rate cuts.

Tactical Fixed Income rose 0.1% last week. The worst-performing holding was the SPDR Blackstone/GSO Senior Loan ETF (SRLN), which fell 0.13%. The best-performing holding was the Invesco Taxable Municipal Bond ETF (BAB), which rose 0.27%. There were no changes to the strategy this week.

Global Multi-Asset Income fell 0.1% last week. The worst-performing holding was the Credit Suisse X-Links Gold Shares Covered Call ETN (GLDI), which fell 0.77%. The best-performing holding was the Vanguard Real Estate ETF (VNQ), which rose 0.41%. There were no changes to the strategy this week.

Factor Rotation fell 1.8% last week. The worst-performing holding was the AlphaClone Alternative Alpha ETF (ALFA), which fell 2.88%. The best-performing holding was the iShares Edge MSCI USA Value Factor ETF (VLUE), which fell 1.31%. There were no changes to the strategy this week.

Sector Rotation fell 1.1% last week. The worst-performing holding was the SPDR S&P Semiconductor ETF (XSD), which fell 3.02%. The best-performing holding was the iShares Cohen & Steers REIT ETF (ICF), which rose 0.74%. This week, the strategy sold the iShares U.S. Medical Devices ETF (IHI) and bought the Utilities Select Sector SPDR Fund (XLU).

International Rotation fell 1.1% last week. The worst-performing holding was the Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR), which fell 2.78%. The best-performing holding was the WisdomTree Japan Hedged Equity Fund (DXJ), which fell 0.15%. There were no changes to the strategy this week.

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