MARKET CONDITION
CURRENT ALLOCATION
market condition
current allocation
INDICATORS USED IN THIS MODEL:
INDICATOR
TIME-FRAME
STATUS
LAST CHANGE
MEDIUM
NONE
Jan 1, 2001
SECTOR
ALLOCATION
ETF EXAMPLE
MUT. FND. EX.
The Risk NumberĀ® from Nitrogen is an objective, quantitative measurement of an investorās true risk tolerance and the risk in a portfolio. The patented technology calculates a ārisk scoreā on a scale from 1-99, utilizing a scientific framework that won the Nobel Prize for Economics.
Reallocation monthly when in US Equity Sectors; quarterly when in Bond Sectors.
None. All activity takes place on monthly or quarterly intervals.
100% in Equities when following the US Equity allocation.
100% out of the market when in Bonds.
This model uses both US Equities and Bonds and is in one or the other at all times. When risk is high in USĀ Equities the model uses Bonds.
Model Description
The Sector Rotation Model is a risk-managed model which invests either in high-ranked US Equity Sectors, or in high-ranked Bond Sectors. At the start of each quarter a risk measurement is made to determine whether the Model will invest in Equity Sectors or in Bond Sectors during that quarter. The GALACTIC SHIELD Indicator is used for this purpose.
When invested in Equity Sectors, a reallocation of the portfolio is made monthly; when invested in Bond Sectors, a reallocation of the portfolio is made quarterly
Construction
At the start of each quarter, if Equities (either Domestic or International) are in an uptrend Ā are selected for that quarter and places equal allocations to the highest-ranked four sectors listed on the Ā Indicators &Ā Rankings page.
If both Domestic and International Equities are in downtrends at that time, then the Model selects Bond Sectors for investment for that quarter. Bond Sector positions are taken from the Multi-Sector Bond Model, with quarterly reallocation.
The performance returns illustrated do not represent actual client accounts and are net of the highest management fee and trading costs which is 0.80%. Returns reflect since inception, one, five and tenāyear periods, and are reflected in U.S. dollars and assume that dividends are reinvested.
The strategies employed may involve technical trading techniques such as trend analysis, relative strength, moving averages, various momentum and related strategies. Technical trading models utilize mathematical algorithms to attempt to identify when markets are likely to increase or decrease and identify appropriate entry and exit points. The primary risk of technical trading models is that historical trends and past performance cannot predict future trends and there is no assurance that the mathematical algorithms employed are designed properly, new data is accurately incorporated, or the software can accurately predict future market, industry and sector performance.
