Sectors & Classes – 8/11/2016

We recently ran our two quantitative ETF rotational strategies which resulted in no investment changes. When I look at the current investment selections listed below, I sometimes get nauseous. In the sector rotation strategy, I question the viability of still being invested in consumer staples and utilities which are trading at historically high multiples. When I look at the non-correlated ETF strategy, I wonder whether earning a 4% + yield really compensates me for owning the emerging market bonds ETF.

Ahhh, and then I relax, knowing that both of these rules-based quantitative momentum strategies are only meant to complement and protect value equity strategies.

If you would like to discuss pairing value stock strategies with ETF momentum strategies, give me a ring.

Current Sector ETFs

Consumer Staples

Utilities

Industrials

Materials

Non Correlated ETFs

Investment Grade Corporate Bonds

Gold

Emerging Market Bonds

US REITS

Thanks,
Gib