During June, the stock market rally expanded beyond large cap growth and megacap tech to include small and mid cap. The S&P 400 mid cap was the best performer among the major capitalization weighted indices in June, producing a total return of 9.2%. The small cap Russell 2000 was next best at 8.0%. The S&P […]
We are sticking with our recommendations for Large Cap and Growth after reviewing the latest output from Northlake’s Market Cap and Style models. For client assets following the models, this means we will hold the S&P 500 (SPY) and the Russell 1000 Growth (IWF) for at least another month. Clients using thematic strategies but not […]
There are no changes to the signals from Northlake’s Market Cap and Style models after the latest update. Last month the models switched to Large Cap and Growth and fresh data shows those signals are even stronger. The technical and trend indicators are leading the way which is not a surprise given the widely discussed […]
Volatility in the financial markets and economy during March triggered a shift in the recommendations from Northlake’s thematic models. For the first time since September 2020, the Style model is recommending growth. The model signal had been value or neutral for two and a half years. The Market Cap model shifts back to large cap […]
There are no changes to the signals from Northlake’s Market Cap and Style models. We are sticking with our current recommendation of Mid Cap and remaining neutral on growth vs. value. Client positions using the models in the S&P 400 Mid Cap (MDY), the Russell 1110 Growth (IWF), and the Russell 1000 Value (IWD) will […]
The stock market is off to a great start in 2023 in line with Northlake’s Market Outlook anticipating more volatility, avoidance of a severe recession, and positive returns in 2023. We are encouraged that our models, favored themes, and individual stocks are off to a good start. Our Market Cap model favors mid cap again […]
As we anticipated in last month’s analysis, Northlake’s Market Cap model shifted from large cap to mid cap with the latest update. The models use two-month averages to reduce signal volatility, so dropping November’s strong large cap reading in favor of January’s new small cap reading flipped the signal. Most of the shift over the […]
Northlake’s thematic model recommendations are unchanged for December. The Market Cap model again favors large cap after last month’s change from mid cap. The Style model begins a fifth consecutive month at neutral between growth and value. Client portfolios that use Northlake’s models will continue to own the S&P 500 (SPY) for market cap exposure, […]
Northlake’s Market Cap model shifted from mid cap to large cap with the latest monthly update. The Style model sticks at neutral for the fourth consecutive month. The change to large cap is driven by technical and trend factors with external factors focused on the economy and interest rates already leaning toward large cap for […]
Despite weak and volatile markets in September, we are sticking with our preferences for mid cap and neutrality on growth vs. value. The September decline in stock and bond markets was broad-based with little variation in performance across market cap, style, sectors, and industries. Northlake believes the market ended September oversold vs. our expectation for […]
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Bayfield, WI 54814
tim@northlakecapital.com
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