Protective Asset Allocation
This strategy invests in the asset classes with the highest momentum using a selection universe of 12 ETFs. The asset classes covered are the S&P 500, the Russell 2000, the NASDAQ 100, European Equities, Japanese Equities, emerging market equities, long-term treasury bonds, high yield bonds, corporate bonds, commodities, gold, and real estate. The strategy will invest in the 6 asset classes with the strongest momentum on each rebalancing date. It will also move toward a crash protection asset (intermediate-term bonds) as the number of asset classes that are in a downtrend rises. Once more than half the assets in the selection universe are in a downtrend, the portfolio will invest 100% of its value in the crash protection asset.