Rutherford Portfolio Review (Tranche 2): 7 October 2022

Canyon Diablo Meteorite at Meteor Crater in Arizona**

It was a volatile week in the US equity markets but we managed to close the week slightly higher by ~1.6%:

3600 acted as strong support on the first retest of the prior pivot low but we are testing the level again so we will have to see whether it continues to hold.

The performance of US equities relative to other asset classes was mixed with Commodities and Gold showing significant short term strength but Bonds and Real Estate showing weakness:

Holdings in the portfolio are meager:

with the only holding being a small position in VTI in Tranche 2 (the focus of this week’s review). It is not surprising that performance of the portfolio was pretty flat:

and we continue to stay ahead of the benchmark AOR Fund. Most tranches now show returns at least as good as the benchmark.

If we check rankings and recommendations from the BHS model:

we still see no Buy recommendations but there is a little green in the short-term HA signals, particularly for Commodities and Gold.

If we take a look at the rotation graphs:

there is no evidence of significant strength and no Buy recommendations from the rotation model algorithm:

Consequently I will be selling the shares in VTI and moving to 100% Cash.

** This meteorite is of interest to me since it is one of several meteorites that I analyzed as part of my thesis many years ago. This meteorite is one of the largest samples in existence and the portion that I examined is part of the meteorite collection at the British Museum of Natural History in London.

David