Rutherford Portfolio Review (Tranche 2): 5 May 2023

Botanic Gardens, Singapore

It was another relatively uneventful week in US Equities with the SPX (S&P 500 Index) continuing to bang it’s head against resistance at ~4150 and closing down slightly from last week’s close:

It is still not clear where we go from here but volatility has picked up over the past 2 weeks so we may be preparing for a breakout from the recent range very soon.

Over the past week, US Equities (as represented by the VTI ETF) showed relative weakness compared to other major asset classes:

with Gold and International Equites showing the most strength.

Current holdings in the Rutherford Portfolio look like this:

and performance of the portfolio like this:

Although portolio performance is not matching the benchmark AOR fund since moving the management model to a momentum rotation system in December 2022 it did a little catching up over the past week – so we’ll check on the current rotation graphs:

where we see GLD showing strong long-term strength but weakening in the shorter term.

If we look at recommendations from the rotation model:

we see that GLD and VEA (Developed Market Equities) are recommended for purchase in addition to the benchmark AOR Fund. In terms of adjustments to Tranche 2 of the portfolio (the focus of this week’s review) these adjustments look like this:

i.e. a simple switch from TIP (Inflation protected Bonds) to VEA.

David