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 December, the sector model overweighted Value areas such as Energy, Materials, and Financials, as well as defensive sectors like Utilities and Consumer Staples. Industrials, Health Care, and Real Estate entered the month below benchmark allocation. Communication Services and Consumer Discretionary are two sectors that are significantly below benchmark weighting.
Click the link below to read more about the strategy’s positioning.
Full strategy commentary: NDRSASDH202212061
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