Day Hagan/NDR Smart Sector® with Catastrophic Stop Strategy June 2024 Update

The Day Hagan/Ned Davis Research Smart Sector® with Catastrophic Stop strategy entered this month recommending a fully invested position. 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.

The sector model maintained mixed leadership this month. Entering June, Financials, Information Technology, Health Care, Energy, and Utilities are above benchmark weight. Real Estate, Communication Services, Materials, Industrials, Consumer Discretionary, and Consumer Staples are below benchmark weight.

Full strategy commentary: NDRSASDH202406031

Visit the Day Hagan research page for access to additional commentary and webcasts.

Thoughts From the Divide: The (Golden) Path

BY JON WEBB

While the road to hell is paved with good intentions, it appears that the “golden path” to a soft landing (which by way of reminder is a “triumph of hope over experience”, if you ask Mr. Summers) is paved with rate cuts. In an interview earlier this week, the Chicago Fed president Austan Goolsbee cast another vote in favor of “adjustment cuts”, saying that “You risk the golden path if you are going to be as restrictive as we are now”. Meanwhile, Jerome Powell was quick to assure the audience during his latest interview that “today I am not going to be sending any signals, one way or the other on any particular meeting” as far as rate cuts are concerned. However, that did not prevent the Chair from referring to ol’ reliable of monetary policy, “long and variable lags”, to explain why, “if you wait until inflation gets all the way down to 2%, you’ve probably waited too long”. Read more →

NDR Fixed Income Allocation Strategy November 2022 Update

BY BRIAN SANBORN

The NDR Fixed Income Allocation Strategy, Positioning Update Read more →

NDR Fixed Income Allocation Strategy September 2023 Update