Month-To-Date


2.56%

0.66%

One Year


1.33%

8.10%

Two Year*


9.51%

12.46%

Inception*


12.55%

13.37%

July started strong and ended weak. The S&P 500 Total Return posted a modest 0.66% return.


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: The market looked strong for most of the month, until the last week when investors started selling as a result of escalated trade wars between the U.S. and China. To further scare investors, the yield on 10-Year Treasuries fell below the yield of 30-Day Treasury Bills. This is important to understand for several reasons. First, banks and financial institutions use the 10-Year Treasury to set their own rates. Second, investors could earn a higher rate of return on the 30-Day Treasury Bill than they could on the 10-Year Treasury. This is important because it signals are broader problem with the Trump administration’s trade war with China. Recent back-and-forths between the U.S. and China have been met with market selloffs, but the fall in treasury yields resulting in the inversion of the yield curve signal a larger problem.

The model continues to have an overweighted allocation to the Information Technology sector which had mixed results for the month. Consumer Staples and Consumer Discretionary sectors looked more favorable for July. In addition, sectors with smaller allocations like Communication Services, Utilities and Industrials performed well.

It should be noted that the market rebound from December of 2018 has been erratic, volatile and choppy. As a result, the Equity Trend Model has struggled to return to the strong (out)performance it saw before the sell off at the end of last year. The models struggle to find favorable trends is very evident when you see positions like Proctor & Gamble (PG) and Nexterra Energy Inc. (NEE) being owned in the model portfolio. Proctor and Gamble and Nexterra are largely seen as defensive stocks, and yet they entered our portfolio as a result of trending higher in price. Seeing Consumer Staples and Utilities in a Trend Following Portfolio is very telling of the choppy broader market.

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: 7/31/2019

July 2019 Equity Trend Report

July started strong and ended weak. The S&P 500 Total Return posted a modest 0.66% return.

May 2019 Equity Trend Report

The S&P 500 Total Return index saw the largest monthly decline for 2019, and the third largest monthly decline since the inception of the Equity Trend Model.

April 2019 Equity Trend Report

For the second month in a row, the Adams Wealth Management Equity Trend Model outperformed the S&P 500 Total Return Index.

March 2019 Equity Trend Report

The Equity Trend Model adds risk back to the model and rebounds in March 2019 with a month-to-date return of 3.21%.

February 2019 Equity Trend Report

The market added to its positive Year-To-Date return in February with the S&P 500 Total Return gaining 3.10% for the month.

January 2019 Equity Trend Report

The market roars back in January, while the Equity Trend model continues to trim exposure to equities.

January 14, 2019 Market Trend Report

While the S&P 500 Index has recently rebounded off of its Christmas Eve by over 10% as of the close on January 11, 2019, investors should remain cautious.

December 2018 Equity Trend Report

Frank Loesser wrote the “Baby, It’s Cold Outside” in 1944 to sing with his wife, Lynn Garland, to indicate to their party guests when it was time to leave, and investors took the same cue in December.

November 2018 Equity Trend Report

Despite the modest returns for the month of November, the market has reminded us about the “Wild World” of investing in equities in 2018.

October 2018 Equity Trend Report

Despite the poor start to the fourth quarter, the Equity Trend Model stayed positive year-to-date and on a one year basis up 4.98% and 6.75% respectively.

September 2018 Equity Trend Report

Equity Trend followed up its strong strong month in August with a positive return for September gaining 1.27%.

August 2018 Equity Trend Report

The S&P 500 Total Return Index was up 3.40% in August while Equity Trend finished up 6.61% nearly doubling the return of the index for the month.

Sign Up for Your FREE Portfolio Management Strategy Session

July 2019 Equity Trend Report ultima modifica: 2019-08-09T12:58:12-05:00 da Adams Wealth Management

Get in Touch

600 S Tyler St #2100
Amarillo TX 79101

Other Information:

Adams Wealth Management Group LLC (“Adams Wealth Management”) is a registered investment adviser offering advisory services in the State of Texas and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. The presence of this website on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute. Follow-up or individualized responses to consumers in a particular state by Adams Wealth Management in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or pursuant an applicable state exemption.

All written content on this site is for information purposes only. Opinions expressed herein are solely those of Adams Wealth Management, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.

All investing involves risk, including the potential for loss of principal. There is no guarantee that any investment strategy or plan will be successful.

Share This