I’m pleased to share an update on recent market developments and the strategic adjustments to your Portfolio Shield™ for November 2025. The strategy continues to perform exceptionally well, driven by strong gains in equities.
Despite a gradually slowing economy and weakening labor market, Federal Reserve rate cuts continue to fuel euphoria in stocks. However, risks persist. Historically, if the Fed is cutting due to labor market weakness, the odds of a recession and a bear market increase significantly.
High-yield and intermediate-term bonds both were mostly unchanged last month. Momentum for these asset classes remains positive, supporting their continued inclusion in the portfolio.
For November, 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. Forward-looking indicators suggest the earliest the strategy will hedge is April or May, however if market conditions change, that timeline could move up. 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. The decision to add or remove high-yield or intermediate-term bonds from the bond allocation is now based on my Ultimate Meta Strategy which requires a multi-strategy consensus to determine if either security should be added or removed from the allocation.
Currently, the Ultimate Meta Strategy is optimized for 10-day forward returns, though it can be modified as needed. Going forward, the Ultimate 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.
