Rutherford Portfolio Review (Tranche 4): 21 July 2023

Napier, New Zealand

It was a relatively quiet week in the US equity markets with little change from where we were last week and still sitting at resistance near the upper 1 SD boundary of the uptrend channel

US equities was not the only major asset class with little action:

Commodities, at the top, and Emerging Market equities, at the bottom, were the only asset classes with any significant movement last week.

Current holdings in the Rutherford Portfolio look like this:

with Tranche 4 (the focus of this weeks review) holding positions in VTI (US Equities) and AOR (the benchmark fund). 25% of the Tranche value is held in Cash.

Recent performance of the portfolio is shown in the screenshot below:

where we can see that we are tracking the benchmark AOR fund fairly closely.

Checking on the rotation graphs:

we see VTI clearly in the lead in the desirable upper right quadrant (positive long and short-term momentum).

Not unsurprisingly this is reflected in the recommendations:

where it is joined by VNQ and PCY, together with AOR as the suggested assets to Buy.

Consequently, this weeks adjustments will look like this:

i.e. a portion of the AOR holdings will be sold to free up enough Cash to allow the addition of VNQ and PCY to the mix.