I’m pleased to update you on recent market developments and the adjustments we’ve made to your Portfolio Shield™ strategy for May.
Last month, we reduced equity exposure and added long-term bonds to hedge against a potential market downturn. When stocks declined in early April, bond prices also dipped, but our strategy effectively limited losses compared to the broader equity market. By month-end, both stocks and bonds had recovered most of their losses, reinforcing the value of our proactive approach.
For May, we’re maintaining a cautious stance on equities due to ongoing economic uncertainty and elevated market risks. This approach may continue through August if conditions persist. Our bond strategy performed well in April, with intermediate-term bond prices rising. As high-yield bonds now show strong momentum, we’ve reintroduced them to the bond allocation alongside intermediate-term Treasuries across all four bond-holding models.
We’re also making steady progress on enhancing the equity allocation. As noted in last month’s update, we’re working toward transitioning Portfolio Shield™ into a dynamic, monthly rotational momentum strategy. With our newly completed back-testing engine, we can now rigorously assess various approaches using historical data to pinpoint the most effective strategies. Our aim is a fully rotational model that stays agile and responsive to market shifts.
For May, your portfolio reflects these changes: the equity allocation remains cautious with a position in long-term Treasuries, while the bond allocation includes high-yield bonds alongside intermediate-term Treasuries across all four bond-holding models.
Please note that all strategies will be rebalanced on the first trading day of each month. Any new funds will be invested according to your selected model at that time. If you wish to change your investment strategy, changes will be implemented at the next rebalance.
Accounts with a zero balance for six months or more will be closed, and, where applicable, advisory agreements terminated.
Currently, we maintain a minimal cash allocation of just 0.3% across all models.
If you have any questions or would like to discuss your Portfolio Shield™ strategy further, please feel free to reach out.
Please inform us of any changes to your financial situation so we may continue meeting your investment needs effectively. Providing accurate and complete information is essential for us to offer appropriate investment recommendations.
Thank you for your continued trust in us to manage your investments with Portfolio Shield™.
Best regards,
Steven Van Metre
