Rutherford Portfolio Review (Tranche 1): 31 May 2024

Grounds of Royal Palace, Bangkok, Thailand

Apologies for being late with this week’s review, I had an emergency and had to go out of town for the weekend and only returned late last night. Last week was not a great week for US equities with the S&P Index closing the week down ~o.5% from last week’s close:

Prices are now sitting near the bottom of the current uptrend channel – so we’ll see where we go from here.

Real Estate was the best performing asset class on the week with relatively strong gains, particularly in the US sector:

Current holdings in the Rutherford Portfolio look like this:

with holdings in International Equities (VEA and VWO), Commodities (DBC) and Gold (GLD) in Tranche 1 of the portfolio.

Recent performance looks like this:

and is lagging the performance of the benchmark fund a little over the past couple of weeks.

Tranche 1 is the focus of this week’s review so we’ll take a look at the rotation graphs:

where we see significant rotation out of the desirable top right quadrant – with even VWO (Emerging Market Equities) beginning to show short term weakness after a few weeks of strength.

A look at the recommendations from the Rotation model being used to manage this portfoli:

shows no Buy recommendations and only Hold recommendations for VEA and VWO.

Consequently, this week’s adjustments will look something like this:

where I shall be selling the positions held in DBC and GLD and using the cash generated to buy shares in AOR, the benchmark fund.