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 February, the sector model continued to overweight Value areas such as Energy, Materials, and Financials, as well as added more Growth-oriented Technology to its overweights. Real Estate also moved to a slight overweight. The prior month’s significant underweights in Consumer Discretionary and Communication Services were neutralized. Defensive sectors such as Consumer Staples, Health Care, and Utilities were recommended underweights, as well as cyclically oriented Industrials.
Click the link below to read more about the strategy’s positioning.
Full strategy commentary: NDRSASDH202302021
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