The Day Hagan/Ned Davis Research Smart Sector® with Catastrophic Stop strategy entered this month recommending a fully invested allocation. The NDR Catastrophic Stop model is based on the combination of two proprietary composites: 1) the Internal Composite (technical and price-related indicators) and 2) the External Composite (fundamental, economic, interest rate, and behavioral/sentiment indicators). Each composite is one-half of the overall score.
Entering April, the sector model is overweight Value areas such as Energy and Financials, as well as Growth sectors like Information Technology and Communication Services. Interest-rate sensitive sectors such as Consumer Staples, Real Estate, and Utilities improved in allocation and are now slightly above benchmark weight. Consumer Discretionary dropped in allocation, joining Industrials and Health Care at underweight.
Click the link below to read more about the strategy’s positioning.
Full strategy commentary: NDRSASDH202304041
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