Our core market health indicators saw improvement in everything except our measures of the economy.
We’re increasing exposure in our core portfolios today. Our Long / Cash portfolios will now be 60% long. Our hedged portfolio will be 80% long and 20% short. The short is a simple short of the S&P 500 Index (or SH). Below are charts showing where we added exposure (green lines) and raised cash or added hedges (yellow and red lines). The core long / cash portfolio has had limited exposure that has varied from 20% long to 100% long.
The hedged portfolio (Long / Short Hedge) Has had a bit more exposure to the long side, but carried a fairly significant hedge during the last part of this rally. This was due to our core market health indicators remaining mostly negative during the move from 1550 to 1650.