- Strong April equity performance.
- New all-time highs in Q3 strategies.
- ETF version of flagship strategy.
Q3 Performance Update
US equities posted solid gains in April and hit another record high late in the month. A dovish stance by the Fed and positive economic data are considered to be the impetus for the rise. The S&P 500 gained 3.9%, the Nasdaq added 5.5%, and the Dow rose 2.6%. The relative underperformance of the Dow is largely due to single-stock performance in a smaller universe of 30 stocks.
Sectors were mixed, as Financials (XLF) surged 9.0% and Communication Services (XLC) rose 7.1%. On the losing side were Health Care (XLV) shedding 2.7% and Real Estate (XLRE) dropping 0.5%. A range of over 10% from best to worse performing sector is certainly wide for one-months’ time, but this spread enables our Sector-based models to shine as they attempt to avoid the laggards and invest in the leaders.
Fixed income markets finished April flat to down. The Aggregate Bond (AGG) lost 0.2%, while long-term Treasurys fell 2.0% on positive economic data. High Yield (HYG) moved upwards 1.0% on the strength of the equity market. April saw much less talk of an inverted yield curve as longer-term bonds saw their yields creep up, as shorter-term yields dropped a bit.