The bear market accelerated in February. I think three things were at work. First, economic statistics on a global basis decelerated rapidly in January and February. Second, as corporations reported their year end results they confirmed the accelerating weakness in the economy. Third, Wall Street frustration with government’s response to the crisis boiled over. Put […]
Northlake’s Style model shifted from value to growth for February. Hopefully, it was only one month late. Last month was awful for value on a relative basis with the Russell 3000 Value (IWW) dropping 11.6% against a decline of just 5.6% for the Russell 3000 Growth (IWZ). The S&P 500 fell 8.6% so last month’s […]
Northlake’s monthly Market Cap and Style models favor Small Caps and Value for January. As a result, client and personal accounts have a position in the Russell 2000 (IWM or IJR) and the Russell 1000 Value (IWD or IVE). These positions are unchanged from December. In fact, the small cap signal has been in place […]
There are no changes to Northlake’s Market Cap and Style models for December. I continue to own Small Cap (IWM/IJR) and Value (IWD/IVE) for personal and client funds . As a reminder, Northlake uses monthly models to rotate ETFs trying to capture excess return relative to the S&P 500 (SPY). The models are designed to […]
There are no changes to Northlake’s Market Cap and Style models for November. The signals continue to be small cap and value. As a result of the update clients continue to own the Russell 2000 (IWM) and the Russell 1000 Value (IWD) to reflect the latest signals. As a reminder, these are monthly models designed […]
For the first time since June 2007, Northlake’s Style model is flashing a value signal. The new signal breaks a 15 month run of growth signals. As a result of the new signal, I sold all client positions in the Russell 1000 Growth ETF (IWF) and purchased dollar-for-dollar in the Russell 1000 Value ETF (IWD). […]
For the first time since August 2005, Northlake’s monthly Market Cap model is flashing a small cap signal. As a result, I sold all client and personal positions that tin the S&P 400 Mid Cap (MDY) that track this model and reinvested dollar-for-dollar in the Russell 2000 (IWM). Small caps have outperformed for several months […]
Once again there were no changes to Northlake’s monthly Market Cap and Style models. The Market Cap signal remains mid cap and the Style signal remains growth. As a result, Northlake continues to own the S&P 400 (MDY) and the Russell 1000 Growth (IWF) for assets devoted to this strategy. The Market Cap model remains […]
There were no changes again this month to Northlake’s Market Cap and Style models. The signals continue to flash mid cap and growth. As a result, I am maintaining client and personal positions in the S&P 400 Mid Cap (MDY) and the Russell 1000 Growth (IWF) that are dedicated to this strategy. Both signals weakened […]
There were no changes to Northlake’s Market Cap or Style Model for June. The Market Cap model continues to flash a Mid Cap signal while the Style model remains firmly in growth mode. As a result, client positions in the S&P Mid Cap 400 (MDY) and the Russell 1000 Growth (IWF) are being maintained. The […]
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tim@northlakecapital.com
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