Rutherford Portfolio Review (Tranche 1): 13 May 2022

Towel Art

It was another losing week in the US equity markets with the S&P 500 closing the week ~2.4% lower:

We broke below the 400 level briefly at the beginning of the week but closed the week essentially sitting right on this potential support level. From here I would favor a bounce to test the previous support level (now potential resistance) at 420 – but we could just as easily see a continuation to the ~380 level (127% Fibonnaci extension).

Comparing this performance to other asset classes:

we see that Bonds held up best over the past week with Gold and Real Estate at the bottom of the list.

Current holdings in the Rutherford Portfolio look like this:

with Tranche 1 (the focus of this week’s review) holding positions in VNQ, RWX, DBC and GLD.

Performance looks like this:

still slightly ahead of the benchmark AOR fund, but showing a little more weakness over the past couple of weeks.

We’ll check current rankings and recommendations from the BHS model:

where we see that DBC (Commodities) is the only Buy recommendation with a lot of red elsewhere.

Taking a look at the rotation graphs:

does not present a positive picture and recommendations from the rotation model:

are the same as those from the BHS model.

Based on the above I am going to go to Cash in this tranche by selling current holdings in VNQ, RWX and GLD:

David