I’m pleased to share an update on recent market developments and the strategic adjustments to your Portfolio Shield™ for October 2025. The strategy continues to perform exceptionally well, driven by strong gains in equities, high-yield bonds, and intermediate-term bonds.
Despite a gradually slowing economy and weakening labor market, Federal Reserve rate cuts continue to fuel euphoria in stocks. However, risks persist. Historically, stocks can rally for up to three months following rate cuts, but a weakening labor market could signal the onset of a bear market.
High-yield and intermediate-term bonds both delivered strong returns last month, bolstering the overall bond allocation. Momentum for these asset classes remains positive, supporting their continued inclusion in the portfolio.
For October, your portfolio remains fully invested in the S&P 500 and Nasdaq-100, consistent with last month’s positioning. The high-yield and intermediate-term bond allocations also remain unchanged. A minimal cash allocation of 0.3 percent is maintained across all models.
Given the current market strength, the strategy will maintain its risk-on stance without hedging in the near term. We are prepared to adapt swiftly if conditions shift, but the robust equity performance justifies full allocation for now.
I have been diligently working to AI-enhance Portfolio Shield™ through improvements to my trading program. Previously, decisions to add or remove high-yield or intermediate-term bonds from the bond allocation were based on momentum signals generated by my Momentum Timer Pro™ formulas.
Since my last update, with the help of AI, I have developed an optimization program that tailors strategies on a per-security basis. This has led to significant improvements in signal generation.
I now have ten optimized strategies integrated into the trading program. With AI assistance, I have combined them into a Meta Strategy that weights each based on their relative strength for both entry and exit points.
Currently, the Meta Strategy is optimized for 10-day forward returns, though it can be modified as needed. Going forward, the Meta Strategy’s recommendations will replace the prior momentum signals from the original Momentum Timer Pro™ algorithm.
Further refinements to the trading program are underway before I can build a separate optimization engine focused on longer-term forward-looking return entry points. This will better align with the long-term investment objectives of the strategy.
I’ll continue to update you as progress is made.
Please note that all strategies are rebalanced on the first trading day of each month, with new funds 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 longer may be closed, and any applicable advisory agreements terminated.
We remain dedicated to your financial success. If you have questions or wish to discuss your Portfolio Shield™ strategy further, please don’t hesitate to reach out. Additionally, please inform us of any changes to your financial circumstances so we can tailor our recommendations to your needs. Accurate and complete information ensures we provide the most effective investment guidance.
Thank you for entrusting us with your investments. We are committed to managing your Portfolio Shield™ with precision and care to help you achieve your financial aspirations.
Best regards,
Steven Van Metre
