Prometheus Asset Allocation – July 2024

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The Prometheus Asset Allocation program offers a stable, macro-focused approach to asset management. Prometheus Asset Allocation aims to outperform a traditional stock and bond portfolio by leveraging our proprietary systematic macro process to rotate between 3 ETFs monthly (plus cash).

This strategy starts by diversifying the asset base with commodities and TYA, a higher volatility version of 10-year treasuries, ensuring performance across various economic conditions including expansions, recessions, and inflationary periods.

Our systematic macro process then guides the timing of entry and exit for asset exposures, optimizing our holdings to capitalize on favourable economic times and avoid downturns. We strategically invest in equities during expansions, bonds during economic slowdowns, and commodities during stagflations, employing a proprietary approach to determine these regimes.

Additionally, we maintain a targeted 10% volatility, mirroring the risk level of a traditional 60/40 portfolio while protecting against significant losses. Further, 10% is a level of risk where any losses incurred are never so large that they run the risk of ruin. 10% is also largely consistent with the volatility of a 60/40 stock and bond portfolio.

Asset Allocation updates are sent out on the first business day of every month in the form of a video, along with the accompanying slide-deck.

 

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