We entered 2016 hedged with almost 30% cash in our tactical U.S. equity portfolios. Since, the market has declined -8%. This negative start has improved our valuation metrics which in turn switched our market exposure model to a more bullish position.
The U.S. stock market presented challenges in 2015. While major U.S. indices ended the year relatively flat, the average stock ended in negative territory. When the markets closed on December 31, the S&P 500 Index produced an annual return of +0.74%, while RSP (Guggenheim S&P 500 Equal Weight ETF), a gauge of the average stock price, ended -2.7%.
Weak Start Puts Stocks on Sale
We entered 2016 hedged with almost 30% cash in our tactical U.S. equity portfolios. Since, the market has declined -8%. This negative start has improved our valuation metrics which in turn switched our market exposure model to a more bullish position.
2015 Brought Many Challenges for Investors
The U.S. stock market presented challenges in 2015. While major U.S. indices ended the year relatively flat, the average stock ended in negative territory. When the markets closed on December 31, the S&P 500 Index produced an annual return of +0.74%, while RSP (Guggenheim S&P 500 Equal Weight ETF), a gauge of the average stock price, ended -2.7%.