This document has been compiled using indicators provided by the Market-Signals trading bot which studies global market data. This document shows the evolution of the strategies proposed by the bot and gives the trends of a selection of ETFs, which follow the main world markets, for January 2023. The strategies hold only long positions. No leverage is used. This document is for information purposes only and should not be taken as investment advice.
Global Market Breadth
| Market | Trend | Direction |
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| US stock market |
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| US bond market |
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| US Treasuries |
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| US Real Estate |
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| Europe Equities |
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| Japan Equities |
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| Emerging Market Equities |
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| Gold |
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Portfolios
US Growth Portfolio
T
he portfolio US Growth dropped 2.76% in December. We see a falling trend in the U.S. equity market, we assume a Risk-Off market regime and the portfolio is allocated to a long-term U.S. Treasury Bond ETF (TLT). The degree of risk of the strategy for this month is low with a Risk Score in decline of 0 out of 10.
The 1-year trailing return of this strategy is -18.74%. Since opening the portfolio at eToro in November 2019, the strategy has performed 62.25%, in comparison, the benchmark asset (S&P 500) has advanced 32.82%. The strategy has suffered a maximum loss of 18.74% since the portfolio opened at eToro, compared to the benchmark asset (S&P 500) which lost 23.89% at maximum.
This strategy captures the U.S. stock market growth for long-term investors who want high returns.
Since inception at eToro
Max drawdown
Since inception at eToro
Portfolio: -18.74%
S&P 500: -23.89%
- eToro portfolio
US Balanced Portfolio
T
he portfolio US Balanced retreated 2.44% last month. The strategy combines an allocation in US bonds (30%) with the US Growth portfolio (70%). The trend in the US bond market for January is negative. The ETF selected in the bond part for this month is IEF. The portfolio's allocation is 100% cash. The degree of risk of the strategy for January is low with a Risk Score in regression of 0 out of 10.
The 1-year performance of this strategy is -12.65%.
This strategy provides a balanced stocks and bonds allocation for investors who want a U.S. market exposure with limited risks.
Global Conservative Portfolio
T
he portfolio Global Conservative receded 0.83% in December. The Strategy combines a multi-market protective asset allocation strategy (Global Stable portfolio 70%) and a US stock market strategy (US Growth portfolio 30%). The portfolio's allocation is 100% cash. The degree of risk of the strategy for this month is low with a Risk Score in decline of 0 out of 10.
The 1-year performance of this portfolio is -8.64%.
This strategy provides a broad geographic diversification for investors who want an international exposure.
Global Stable Portfolio
T
he portfolio Global Stable stayed constant in December. The overall market trend for January is negative. By analyzing a diverse multi-market composed of 12 ETFs (stocks, bonds, gold, real estate, international and emerging markets...), we observe that 0 assets only show a positive evolution. Our model allocates 0% to Risk-On assets and 100% to Risk-Off assets. Asset allocation remains the same this month. The portfolio's allocation is 100% cash. The degree of risk of the strategy for January is low with a Risk Score unchanged of 0 out of 10.
The 1-year trailing return of this portfolio is -5.14%.
This is the safest strategy, the one with the lowest volatility and the least max drawdown of the 4 offered, that makes this strategy an alternative to a 1-Year Term Deposit.
ETF Trends
EFA iShares MSCI EAFE ETF
- Europe, Australia and Far East Equities
The EFA ETF, which measures an index composed of companies from Europe, Australia and the Far East, receded 2.21% in December. The evolution of the performance of this ETF over 1 year is -16.67%. The trend in January is positive with a Trend Score unchanged of 6 out of 10. The level of risk of this ETF in January is low with a Risk Score in decline of 3 out of 10.
VGK Vanguard FTSE Europe ETF
- Europe Equities
The VGK ETF, which follows the major markets of Europe, decreased 2.38% in December. The 1 year trailing return of this equity is -19.12%. The trend in January is positive with a Trend Score constant of 6 out of 10. The level of risk of this equity in January is low with a Risk Score in decline of 3 out of 10.
EWJ iShares MSCI JAPAN ETF
- Japan Equities
The EWJ Exchange-Traded Fund from iShares, which tracks the Japan Equities index, dropped 2.44% in December. The evolution of the performance of this ETF over 1 year is -18.18%. The trend in January is bullish with a Trend Score steady of 5 out of 10. The degree of risk of this ETF in this month is low with a Risk Score in regression of 2 out of 10.
GLD SPDR Gold
- Gold
The GLD ETF, which measures the performance of gold in the commodities market, continued to grow by 2.93% in December. The 1 year trailing return of this ETF is -0.59%. The trend in January is positive with a Trend Score unchanged of 4 out of 10. The level of risk of this ETF in January is low with a Risk Score in regression of 2 out of 10.
QQQ Invesco QQQ
- Nasdaq 100
The QQQ Exchange-Traded Fund from Invesco, which monitors large-cap US technology companies, falls sharply by 9.23% in December. The evolution of the performance of this ETF over 1 year is -33%. The trend in January is bearish. The level of risk of this ETF in January is medium with a Risk Score in decline of 6 out of 10.
TLT iShares 20+ Year Treasury Bond ETF
- Long-Term US Treasuries
The TLT ETF, which replicates long-dated US Treasuries, falls back promptly by 3.09% in December. The performance over a period of 1 year of this equity is -33.11%. The trend in January is bearish. The degree of risk of this equity in January is high with a Risk Score steady of 7 out of 10. This equity is present in the strategy US Growth in January.
IEF iShares 7-10 Year Treasury Bond ETF
- Intermediate-term US Treasuries
The IEF ETF, which monitors an index composed of U.S. Treasury bonds with remaining maturities between 7 and 10 years, retreated 1.87% in December. The evolution of the performance of this ETF over 1 year is -17.39%. The trend in January is bearish. The level of risk of this ETF in January is medium with a Risk Score in decline of 5 out of 10.
IWM iShares Russell 2000 ETF
- US Small Cap Equities
The IWM Exchange-Traded Fund, which monitors the Russell 2000 Index, falls sharply by 6.94% last month. The evolution of the performance of this ETF over 1 year is -21.62%. The trend in this month is bearish. The level of risk of this ETF in this month is medium with a Risk Score constant of 4 out of 10.
VNQ Vanguard Real Estate ETF
- US Real Estate
The VNQ ETF, which monitors US Real Estate Equities, decreases sharply by 6.36% in December. The evolution of the performance of this equity over 1 year is -29.31%. The trend in January is bearish. The level of risk of this equity in January is medium with a Risk Score in decline of 5 out of 10.
BND Vanguard Total Bond Market ETF
- US Total Bond Market
The BND ETF from Vanguard, which measures the Vanguard Total Bond Market index, retreated 1.26% in December. The 1 year trailing return of this equity is -15.48%. The trend in January is bearish. The level of risk of this equity in January is medium with a Risk Score in decline of 5 out of 10.
SPY SPDR S&P 500 ETF
- S&P 500
The SPY Exchange-Traded Fund from SPDR, which replicates the index S&P 500, collapses distinctly by 6.19% in December. The evolution of the performance of this ETF over 1 year is -19.41%. The trend in January is negative. The level of risk of this ETF in this month is medium with a Risk Score in decline of 5 out of 10.
LQD iShares iBoxx $ Investment Grade Corporate Bond
- US Corporate Bonds
The LQD ETF, which measures an index composed of U.S. corporate bonds, fell 2.16% in December. The evolution of the performance of this ETF over 1 year is -20.45%. The trend in January is negative. The level of risk of this ETF in January is medium with a Risk Score in decline of 4 out of 10.
MDY SPDR S&P Midcap 400
- Midcap 400
The MDY Exchange-Traded Fund from SPDR, which replicates mid-cap U.S. stocks, decreases sharply by 5.89% in December. The performance over a period of 1 year of this ETF is -14.51%. The trend in this month is bearish. The degree of risk of this ETF in this month is medium with a Risk Score in regression of 4 out of 10.
JNK SPDR Bloomberg High Yield Bond
- High Yield Bonds
The JNK ETF, which measures US high yield bonds, falls sharply by 3.05% last month. The 1 year trailing return of this ETF is -16.67%. The trend in this month is bearish. The level of risk of this ETF in this month is low with a Risk Score in decline of 3 out of 10.
EEM iShares MSCI Emerging Markets ETF
- Emerging Market Equities
The EEM ETF, which monitors the MSCI Emerging Markets Index, falls sharply by 4.10% last month. The evolution of the performance of this ETF over 1 year is -22.92%. The trend in this month is bearish. The level of risk of this ETF in January is low with a Risk Score in decline of 3 out of 10.
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This communication is for information and education purposes only and should not be taken as investment advice, a personal recommendation,
or an offer of, or solicitation to buy or sell, any financial instruments.
Natevia makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication,
which has been prepared utilizing publicly-available information.
Past Performance is not indicative of future results.