Northlake’s thematic models are recommending mid cap and neutrality on style again this month. Both calls were successful in August amid a pullback in the Mag 7 AI-driven trade and increased chances that the Fed begins cutting the Federal Funds Rate again in September. There will be no changes to model positions in client portfolios. […]
Northlake’s Style model is scaling back its pro-growth stance for August, moving from Growth to Neutral. Client strategies that follow our models will trim half of the Russell 1000 Growth (IWF) holding and reallocate the proceeds to the Russell 1000 Value (IWD). There is no change to the Market-Cap model, which continues to favor mid-cap […]
Northlake’s Market model is switching its recommendation from large cap to mid cap for July. As a result of this change, for client strategies that use Northlake’s models, we are swapping current positions in the S&P 500 (SPY) to the S&P 400 Mid Cap (MDY). There are no changes to the growth recommendation from the […]
Northlake’s thematic model recommendations remain unchanged for June. The Market Cap model favors large cap for the 5th consecutive month. The Style model is recommending growth again after flipping from neutral at the start of May. Client accounts that use Northlake’s models will continue to hold the S&P 500 (SPY) and the Russell 1000 Growth […]
Northlake’s Style model is recommending Growth again after two months with a neutral signal. The model is picking up on risks to the economic outlook caused by the chaotic implantation of large tariffs on friends and foes alike. Soft data based on surveys of businesses and consumers already reflect heightened recession risk. Economic data releases […]
There are no changes to the recommendations from Northlake’s Market Cap and Style models for April. The Market Cap model continues to favor large cap and the Style model remains neutral on growth vs. value. We will not make any changes to client positions that follow our models and will hold the S&P 500 (SPY), […]
After two months favoring growth, Northlake’s Style model shifted back to neutral for March. There is no change to the large cap signal from the Market Cap model that went into effect at the beginning of January. As a result of the new Style model signal, clients using Northlake’s model strategy will see half of […]
Northlake’s Market Cap model flipped from mid cap to large cap for February. The model is picking up the potential for slowing economic growth and higher inflation from policies being put in place by the new administration. Either of these outcomes for the economy historically have led small and mid-cap stocks to underperform large cap. […]
Northlake’s models start 2025 favoring mid cap and growth. We have held mid cap for clients using our thematic models strategy since the beginning of August. The Market Cap model recommended small cap for December. However, we decided to go against the model and stick with mid cap awaiting more confirmation since we considered the […]
Both of Northlake’s models have been on the move over the past six months. At the start of August, the Market Cap model shifted from large cap to mid cap. At the start of May, the Style model shifted to neutral after a yearlong run of growth signals. These changes reflect continued strength in U.S. […]
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Bayfield, WI 54814
tim@northlakecapital.com
847-226-9713
