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 […]
Last month, we shifted our recommendations for both Market Cap and Style in our model-driven thematic strategies. We moved to neutral on growth vs. value and switched from large cap to mid cap for Market Cap. These changes were recommended by our models and consistent with our views on the market outlook over the next […]
Our Market Cap and Style models shifted for August. Market Cap is now recommending mid cap, and Style moved to neutral. Both models had been on their prior recommendations since the beginning of February. The changes are due mostly to factors driven by the market’s sharp rebound in July that impacted the technical and trend […]
There are no changes to our thematic strategies for July. Entering the third quarter, we continue to favor large cap and value. The bias toward value influences our ongoing favorable view of international markets on a relative basis vs. the growth-dominated U.S. market benchmarks. Among economic sectors, we still prefer value-oriented financials and industrials. We […]
There are no changes to Northlake’s thematic strategies as we head into June. We still have a preference for large cap and value and continue to like international exposure which tilts much more toward value than the major U.S. indices that are dominated by large cap growth stocks in technology industries. Our recommendations of large […]
We are sticking with our preference for large cap and value after reviewing our updated models. We also continue to think exposure to international makes sense in strategies primarily focused on thematic exchange traded funds (ETFs). For clients with strategies using Northlake’s Market Cap and Style models, holdings in the S&P 500 (SPY) and Russell […]
Northlake’s models are stable for April despite the recent stock market volatility. We are making no changes to our model-driven or thematic strategies. Client assets following our models will remain invested in the S&P 500 (SPY) and the Russell 1000 Value (IWD) reflecting our model signals and market and economic outlook. Thematic strategies not using […]
We are departing from our usual monthly blog update that focuses solely on our Market Cap and Style models and thematic strategies to provide our current thoughts on market volatility surrounding the Russian invasion of Ukraine and our decision thus far to sit tight and not make major changes to client portfolios. March 2022 Model […]
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tim@northlakecapital.com
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