The Trade Report

May updates to our ETF portfolios

Good morning,

There won’t ever be a wilder month between trade dates than the one we’ve just seen. Amazingly, despite a 15% peak-to-trough drawdown in April, the S&P 500 is actually up since the close of our last trades on April 1.

With a slight cash position, overweight to defensives, and underweight to technology, the models don’t have the alpha they did at the April 7 lows.

However, despite the furious rebound, both portfolios have held in well. Balanced has outperformed its benchmark since the last trades, while Ultra-Growth’s slight underperformance is due almost entirely to last month’s ill-timed increase in energy exposure.

This month, we’re balancing a belief that the worst is behind us, with what is not a great tactical entry point for broad equities.