*Inception: 01/04/2017 | *Annualized | All Data as of: 1/31/2019
Top 5 Current Equity Holdings by Cumulative Return
Top 4 Sectors by Cumulative Return
The Market Roars in January
Month in Review: After a rough end to 2018, the market bounces back to start the year. The S&P 500 Total Return Index closes the month up 6.93%. Despite strong market returns the Equity Trend Model posted a return of -0.16%. The large discrepancy in return was mostly due to small allocation to equities in the model at the end of January. During the fourth quarter of 2018, the model sold many of the equity positions and has yet to reinvest in the stock market. The Equity Trend model follows a rule-driven investment guideline that dictates both when individual equity positions will be sold and when the proceeds from the sells will be reinvested in equities. As a result, the model continued to trim its positions in individual stocks during the month of January.
All of the remaining equity positions in the model at the end of the month posted positive returns for January with the exception of Medtronic PLC (MDT): -0.41%.
Ins and Outs: The model closed eight positions in January leaving only five individual stock positions in the model. The model sold Accenture PLC (ACN), Adobe Systems (ADBE), CSX Corp (CSX), Intuitive Surgical Inc. (ISRG), JPMorgan Chase and Co (JPM), Mastercard Inc (MA), Sysco Corp (SYY), and Visa Inc (V). The model did invest a large portion of the cash position in SPDR 1-3 Month T-Bill ETF (BIL). The model will continue to shy away from equities and not re-invest proceeds from any closed positions in stocks until the S&P 500 closes above its 200 Day Moving Average.
About the model: Adams Wealth Management’s Equity Trend Model is a quantitative, trend-following model portfolio that invests in up to 25 individual equities. Our rules-driven model takes a risk-on/risk-off approach to investing focusing on stocks that are appreciating in price as the broader market trends higher. When the broader market is trending lower, the model will invest in fixed-income ETFs (exchange-traded funds) or a basket of fixed-income ETFs. The investment objective of this model is growth and may not be suitable for all investors. For purposes of comparison, this report uses the S&P 500 Total Return Index. For more information about this model, please read our disclosures.
This information provided is an investment model and does not reflect actual client(s) performance. This model may not be suitable for all investors. Adams Wealth Management seeks to provide investments suitable for all of our clients. As a result, many if not all of our clients will own varying allocations to this and/or other models. Clients with different objects have different results portrayed from this model.
The information provided is net of fees (1.5%). In addition, the results of this model reflect divided payments and other income from investments made.
The Standard & Poor’s 500 Total Return Index (S&P 500 Total Return) measures the total return including distributions of the Standard and Poor’s 500 Index (S&P 500). The S&P 500 is an unmanaged, market capitalization weighted index of 500 widely held stocks. The index is composed of 500 constituent companies and is often used as a benchmark for the U.S. stock market. Please note that investors cannot directly invest in an index.
All investing involves risk, including the potential for loss of principal. There is no guarantee this model will be successful.