Tactical Portfolio Update – US Sectors
Defensive Duo: Gold & Shorts are the Places to Be
The ETF Radar Tactical portfolio is a model portfolio that invests in five ETFs based on my tactical ETF rankings system. The portfolio trades at the end of each month. The holdings for August include SPDR Gold Shares (GLD), ProShares Short Russell 2000 (RWM), iShares Tips (TIP), ProShares Short S&P 500 (SH) & SPDR Utilities (XLU). Once again gold is on top. It gained 12.3% in August is almost at its record high. The main reasons for this were the volatile stock market, continued economic uncertainty in United States and Europe as well as the Federal Reserve holding interest rates low. The other big holdings include two inverse funds based on the US large cap market and the US small cap market. The model is going into these funds primarily because of the market uncertainty. The model sees these markets as still being in a downtrend.
David Cohne, is Senior Advisor, Investment Strategy at ETF Radar. You can reach him directly under davidcohne [at] etfradar.com