Month-To-Date
-5.67%
-5.65%
One Year
-3.48%
2.66%
Two Year*
7.61%
8.92%
Inception*
10.54%
10.51%
The Consecutive Monthly Winning Streak for 2019 Comes to an End in May
About the Equity Trend Model: The Equity Trend Model Portfolio is an investment model created and maintained by Adams Wealth Management. Adams Wealth Management’s Equity Trend Model is a quantitative, trend-following model portfolio that invests in up to twenty-five 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.
Month in Review: Investors sold stocks in May ending four straight months of positive returns in 2019. The S&P 500 Total Return index saw the third largest monthly decline since the inception of the Equity Trend Model. The S&P 500 Total Return Index was down -5.65% and the Equity Trend Model was down -5.67% for the month.
The model saw losses across the board with only five of the twenty-five positions in the model reporting positive returns for the month. Information Technology, the sector with the largest weighting in the model, was hit worst. Pan Alto Networks (PANW): -19.69%, Splunk Inc. (SPLK): -17.92%, Xilinix Inc. (XLNX) -12.62% were the biggest losers for the month in the Information Technology sector, and Nike, Inc. (NKE): -12.6% and Wayfair, Inc (W): -10.85% were the biggest losers for the month in the Consumer Discretionary sector.
Changes to the Model’s Data: We have made a small change to the report that will remain in effect going forward. We had previously relied on sector data provided by the Industrial Classification Benchmark (ICB) to create our heat maps and our sector allocation charts. We wanted to change our sector allocation charts to illustrate the sector weightings of the Equity Trend Model versus the S&P 500 instead of the Model’s current weight against the previous months weight. In order to make an apples-to-apples comparisons we will be using the Global Industry Classification Standard (GICS) to identify each position’s sector. The Global Industry Classification Standard was created and is maintained by Standard and Poor’s.
Ins and Outs: The Equity Trend Model did not have any turnover for the month of May.
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.
Market Data provided by DTN IQFeed.
*Inception: 01/04/2017
*Annualized
All Data as of: 5/31/2019
