The Day Hagan/Ned Davis Research Smart Sector® with Catastrophic Stop strategy entered this month recommending a fully invested allocation. The NDR Catastrophic Stop model is based on the combination of two proprietary composites: 1) the Internal Composite (technical and price-related indicators) and 2) the External Composite (fundamental, economic, interest rate, and behavioral/sentiment indicators). Each composite is one-half of the overall score.
Entering March, the sector model continued to overweight Value areas such as Energy, Materials, and Financials, and added more Growth-oriented Consumer Discretionary to its overweights. Interest-rate sensitive sectors such as Consumer Staples, Real Estate, Communication Services, and Utilities were recommended underweights, as well as cyclically-oriented Industrials and defensive Health Care.
Click the link below to read more about the strategy’s positioning.
Full strategy commentary: NDRSASDH202303021
Visit the Day Hagan research page for access to additional commentary and webcasts.