NDR Dynamic Allocation Strategy March 2021 Update

The Dynamic Allocation Strategy maintained its large allocation to equities. Four of the six top-level indicators in the model (relative strength, leading economic indicators, shipping rates, and central banks) continue to favor equities relative to fixed income. The PMI breadth indicator deteriorated and now favors fixed income. Within the equities decision, Emerging Markets and U.S. Small-Caps received the largest weightings. Cash received its largest allocation since late 2018. Click the link below to read more about the strategy’s positioning.

Full strategy commentary: NDRDAS202103021

NDR Dynamic Allocation Strategy September 2023 Update

BY BRIAN SANBORN

Dynamic Allocation Strategy, indicators, weightings update Read more →

Thoughts From the Divide: The First Cut

BY JON WEBB

In love, the first cut may be the deepest (as per Rod Stewart, Sheryl Crow, and others). But for the Fed’s Waller, the first cut is to be done “methodically and carefully”. Tacky musical references aside, the Fed Governor explained in his speech earlier this week that “the data we have received the last few months is allowing the Committee to consider cutting the policy rate in 2024”. With inflation seemingly on the right path for reaching the FOMC’s “price-stability goal”, Waller was yet another confirmation of the adjustment cut thesis, explaining in his conclusion, “The healthy state of the economy provides the flexibility to lower the (nominal) policy rate to keep the real policy rate at an appropriate level of tightness.” Read more →

NDR Dynamic Allocation Strategy December 2023 Update