At Prometheus, we are committed to equipping our clients with the most granular, high-frequency, and actionable understanding of macro conditions in the industry. We offer our clients a range of research solutions, from big-picture macro themes to actionable trading signals. In the spirit of giving back to the community, we are excited to offer an All-Access week in our Institutional Services. Each day this week, we will unveil one product offering from our extensive Institutional Offering. If you’re interested in institutional access, please contact us at [email protected].
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Welcome to Prometheus ETF Portfolio. The Prometheus ETF Portfolio aims to allow everyday investors to access an investment solution that combines active macro alpha, passive beta, and strict risk control, all in an easy-to-follow, low-turnover solution. We aim to achieve strong risk-adjusted returns relative to cash, with limited capital drawdowns in depth and duration. We do this in a highly accessible package, which rotates between five highly liquid ETFs, readily available to any investor with a brokerage account.
Let us dive into our assessment of macroeconomic conditions:
- Â Market Monitor: Over the last week, markets moved to price a significant global risk shock. This shock had reverberations across asset class performance and correlations. This limits the inference our market regime monitors can obtain from these price movements. Zooming out, markets continue to price in disinflationary outcomes, consistent with the economy.
- Economic Data Monitor: Economic data momentum. Economic data momentum stabilized this week. However, data momentum was not enough to drive markets as a global risk shock took hold. The economy remains in a Slowing But Growing environment. We share some of the latest readings from The Observatory this week that show this ongoing theme.
- ETF Portfolio Positions (Upgraded): Our upgraded ETF Portfolio is Long SPY (18%), Flat DBC (0%), Long IEF (45%), and Long Gold (36%). This allocation has an expected annual volatility of 8%.
- Performance Updates: Our long-only portfolio was down 0.56% this week. This performance was a good indication of risk-control, given the immense volatility of markets this week.