US Equities had another strong week with the S&P 500 Index up close to 2% on the week and ~7.7% in the month from the closing price on 31 December 2022:
We have now taken out the prior December high at 4100 and closed above this level – so we could tentatively call a valid change in trend – although we hit a strong resistance point (61.8% extension) on Thursday and are presently sitting at the top of the new uptrend channel. We might expect to see at least a small correction in the coming weeks.
US markets also topped the best performing asset class list last week:
with equities, real estate and long-term bonds leading the list.
With the Rutherford portfolio not holding any of these assets:
performance lost out to the benchmark AOR Fund:
although still running slightly ahead since the rotation system was adopted for portfolio management.
Checking on the rotation graphs:
we see Developed equity markets (VEA) showing the strongest long-term relative strength (horizontal movement) although weakening in the shorter term (downward vertical movement) – as are many of the recent strong performing asset classes.
From the model recommendations:
we see Buy recommendations for VNQ and RWX with Hold recommendations for VEA and PCY. Accordingly, this week’s adjustments will look something like this:
where I will use the Cash generated from the sale of 27 shares in GLD, together with available Cash, to add positions in VNQ and RWX (US and International Real Estate).