So far this year, portfolios with 100% exposure to equities continue to outperform portfolios that have exposure to fixed income securities (such as those listed as “Passive” below), as the stock market rallies back from its correction in December of 2018.  However, more recently the stock market has seemed to lose some momentum as the 100% equity strategies listed below are virtually flat. 

Comments on this week’s report:

  • Over the trailing 3-months Sector Rotation has been the clear winner as its largely overweight exposure to industrials and technology (i.e. nearly 30% each) has significantly contributed to its outperformance.  However, over the trailing 1-year it is largely underperforming for the same reason.
  • Contrary to Sector Rotation, Low-volatility is outperforming all other listed strategies by a large margin on a 1-year basis as it benefited from its relatively lower drawdown during the stock market correction at the end of 2018, while still participating in the more recent stock market rally.
  • Despite the relatively poor performance from Momentum based equities over the trailing 1-year,  over the trailing 3-year and 5-year periods they have largely outperformed as in those time frames the market has primarily experienced upward momentum.
Important Disclosures:  Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly from The Market Commentator℠, will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio.  Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions.  Moreover, you should not assume that any discussion or information contained in The Market Commentator℠ serves as the receipt of, or as a substitute for, personalized investment advice from The Milwaukee Company™.

Like what you read? Subscribe to our mailing list and receive notifications when new content is posted.

* indicates required
Interested Posts

Follow us on social media!