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 November, the sector model overweighted Value areas Energy and Materials, as well as defensive sectors Consumer Staples and Health Care . Inverse rate sensitive areas such as Communication Services, Utilities, Consumer Discretionary, and Real Estate all entered the month below benchmark allocation. Industrials was the one sector with rising rate sensitivity to enter the month significantly below benchmark weighting.
Click the link below to read more about the strategy’s positioning.
Full strategy commentary: NDRSASDH202211041
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