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 […]
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 […]
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tim@northlakecapital.com
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