I’m pleased to share an update on recent market developments and the adjustments we’ve made to your Portfolio Shield™ strategy for June.
In April, we reduced equity exposure and added long-term bonds to hedge against a potential market downturn. We maintained this cautious approach in May, during which stocks rallied while long-term bonds declined.
Despite the bond allocation’s underperformance, strong gains in equities drove positive returns for the strategy overall. Over the past two months, intermediate-term bonds dipped slightly, but gains in high-yield bonds offset these losses, resulting in a modest price increase for the bond allocation, excluding dividends.
For June, we’ve shifted to a risk-on approach. Strong corporate share buybacks and projected buying from systematic equity strategies have prompted us to remove the bond hedge from the equity allocation.
Additionally, with momentum declining for intermediate-term bonds, we’ve allocated the entire bond portion to high-yield bonds. Your portfolio now fully reflects this risk-on stance, with equities allocated to the S&P 500 and Nasdaq-100 and bonds entirely in high-yield bonds.
We’re also excited to share progress on enhancing Portfolio Shield™. We’ve welcomed a new developer to our team, who is building an advanced application to back-test multiple trading models simultaneously. This will help us optimize long-term equity exposure while strategically reducing risk when needed, ensuring your portfolio remains dynamic and responsive to market conditions.
For June, your portfolio reflects these changes: the equity allocation is fully invested in the S&P 500 and Nasdaq-100, while the bond allocation is entirely in high-yield bonds. A minimal cash allocation of 0.3% is maintained across all models.
Please note that all strategies are rebalanced on the first trading day of each month. New funds will be invested according to your selected model at that time.
To adjust your investment strategy, please notify us before the next rebalance. Accounts with a zero balance for six months or more may be closed, and advisory agreements, where applicable, terminated.
We’re here to support you. If you have questions or would like to discuss your Portfolio Shield™ strategy further, please don’t hesitate to reach out.
Additionally, please inform us of any changes to your financial situation so we can tailor our recommendations to your needs. Accurate and complete information helps us provide the most suitable investment guidance.
Thank you for entrusting us with your investments. We’re committed to managing your Portfolio Shield™ with precision and care to help you achieve your financial goals.
Best regards,
Steven Van Metre
