Orchids – Botanic Gardens, Singapore
Due to the disruption in access to Yahoo price data, and the fact that I am presently travelling, I was not able to post a review of the Rutherford Portfolio last week so I will attempt to play catch-up this week.
After a minor pull-back last week it was a bullish week in US Equity markets with prices again closing near the resistance level of the July all-time highs (triple top?):
This has created a higher low at the ~5400 level in the SPX (S&P 500 Index) and the August pull-back may well be relatively insignificant in terms of longer term trend:
This will be confirmed should we break through the ~5680 level in the next couple of weeks (creating a higher high).
Although US Equities showed the greatest relative strength of all major asset classes (~4% return), all classes generated positive returns over the past week:
Current holdings in the Rutherford Portfolio look like this:
with the following performance:
No adjustments were made to the portfolio (Tranche 3) last week due to the interuption in access to price data. However, backtracking, the recommended adjustments would have looked like this:
where I would have sold shares in AOR to add a position in RWX (International Real Estate).
Checking the current rotation graphs:
Real Estate sectors (VNQ and RWX) remain strong, although weakening a little in the shorter term.
Checking the recommendations from the rotation model:
we see Buy recommendations for VNQ, RWX, TLT (US Treasuries) and GLD (Gold). Since all these ETFs are currently held in Tranche 4 with the exception of RWX I will sell current holdings in VTI and AOR and add a new position in RWX. Combined with last week’s recommended adjustments I will be adding RWX to both Tranches 3 and 4 and will use any excess cash to rebalance positions in VNQ, TLT and GLD.
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