Weekly Model Commentary
January 31, 2012
While many major market indices have been mostly flat since last week, we have seen some positive relative performance in small caps. The Russell 2000 is up over 2% since early trading on January 24th while the S&P 500 is essentially unchanged during the same time. This is positive in the sense that we know that small caps will outperform large caps during times of investor speculation, which should help to drive the markets higher. Additionally, we have seen a stark rally in gold since the 25th, with the price of the metal jumping as much as 6% during the last week. Financials and materials remain the top performing sectors year to date. Though financials have underperformed of late.
The Stadion Investment Model remains unchanged since last week. It continues to signal for full equity allocations based on risk tolerance, and all price trend and market breadth measures remain on. Many of the indicators continue to improve, therefore until we see a stark reversal to the recent market trends we will continue to be invested in top performing ETFs.
Should prices begin to decline, our dynamic sell criteria will tell us when it is appropriate to move to a more defensive allocation, which we will do as quickly as possible. - SMM-022012 - 097
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Past performance is no guarantee of future results. Investments are subject to risk, and any of Stadion's investment strategies may lose money. Investment return and principal value of an investment will fluctuate so that an investor's portfolio may be worth more or less than their original investment. The investment strategy presented is not appropriate for every investor and individual clients should review with their financial advisors the terms and conditions and risk involved with specific products or services. Stadion's actively managed portfolios may underperform during bull markets.
