Month-To-Date
0.01%
3.10%
One Year
-5.19%
6.08%
Two Year*
9.55%
10.42%
Inception*
11.05%
12.17%
Performance
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Market Data provided by DTN IQFeed. *Inception: 01/04/2017 | *Annualized | All Data as of: 2/28/2019
Top 5 Equity Holdings by Cumulative Return
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Asset Allocation
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The Pitfalls of Trendfollowing
Month in Review: 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, while the Equity Trend Model posted a very meager 0.01% return for February. The Equity Trend model is designed to reduce risk by reinvesting the proceeds of exited equity positions in short-term fixed income when the S&P 500 Index trades below its 200 Day Moving Average with the goal of trying to avoid a part of prolonged market downturns. One of the downsides to the Equity Trend Model is that it will have a flat performance when the market rebounds. The most recent performance of the Equity Trend Model versus the S&P 500 Total Return illustrates this effect. Furthermore despite the model’s previous outperformance of the S&P 500 Total Return Index since inception, the S&P 500 Total Return Index has now outperformed since inception.
Of the five remaining equity positions, Microsoft Corp (MSFT) gained 7.28%, Nextera Energy Inc. (NEE) gained 4.88%, Medtronic PLC (MDT) gained 2.39%, Berkshire Hathaway Inc (BRK.B) fell -2.06%, and UnitedHealth Group Inc. (UNH) fell -10.36% for the month of February 2019.
Ins and Outs: No changes were made to the model for the month.
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.
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.
