Over the past week my core measures of market quality and strength fell below zero. One thing of note is that perceptions of risk aren’t rising much (yet). So, we’re seeing core weakness without a lot of concern. We’ll just have to wait to see if the weakness turns to fear or if this is simply a whip saw. The weakness in market quality and strength changes the core portfolio allocations as noted below. As always, use your own personal risk tolerance to structure your own portfolio. Volatility Hedged portfolio: 100% Long (Since 5/7/2018) Long / Short Hedged portfolio: 70% long high beta stocks and 30% short the S&P 500 Index (or use an ETF like SH) Long / Cash portfolio: 40% long and 60% cash
Market Risk Low
Volatility Hedged Portfolio
Long / Short Hedge Portfolio
Long / Cash Portfolio
