Introduction to Smart Sector™ Equity Asset Allocation – Ned Davis Research – 7.11.19
Summary:
Now On Demand.
The Smart Sector™ strategy seeks to enhance returns over a buy-hold equity benchmark by overweighting and underweighting S&P 500 sectors. This strategy is based on the Ned Davis Research (NDR) proprietary sector model. Through the use of NDR’s Catastrophic Stop model, the strategy mitigates the effects of major market declines by reducing equity market exposure.
Join us for this in-depth discussion that will cover:
Smart Sector™ is an objective, weight-of-the-evidence approach. The strategy starts by over- or underweighting the eleven S&P 500 sectors by quantitatively defining each sector’s probability of outperforming the S&P 500 index (total return) using NDR’s sector-specific fundamental, technical, economic, and behavioral indicators.
Smart Sector™ employs the NDR Catastrophic Stop model that identifies periods of high risk for the broad U.S. equity market through time-tested indicators measuring breadth, trend, fundamentals, economics, interest rates, sentiment, and volatility.
Smart Sector™ manages risks by remaining fully invested unless the NDR Catastrophic Stop model is triggered, whereupon the equity-invested position is reduced to 50%. When the NDR Catastrophic Stop model moves back to bullish, indicating lower risk, the strategy immediately returns to being fully invested.
Sponsors of this webcast may contact registrants. This webcast is for financial professionals only.
Speakers:
Brian Sanborn, CFA Senior Product Director – Investment Solutions Ned Davis Research Group
Brian oversees all investment model and signal delivery partnerships. He has been with NDR since 2004.
Brian’s team developed and maintains NDR’s Stock Selection Service, which provides unique stock screening and portfolio analysis tools, in-depth actionable commentary (including themed baskets), and detailed stock information. Brian writes NDR’s Stock Selection publications, which provide insights into recent factor performance, emerging factor trends, and favorable factors for the macro environment.
Previously, Brian led NDR’s Research Applications team, which supported strategists’ research, delivered implementation ideas, maintained interactive tools, and established data feeds. Before joining NDR, Brian was an Assistant Financial Statement Analyst and an Assistant Quantitative Analyst for Vardon Capital Management, where he performed statistical testing and constructed quantitative models.
Brian received a Master’s degree in Statistics from Columbia University and a Bachelor of Science degree in Mathematics and Economics from Davidson College. Brian is a CFA charterholder and is a member of the CFA Institute.
Donald Hagan, CFA Co-Founder, Chief Investment Strategist Day Hagan Asset Management
Prior to founding the firm, Don was Senior Vice President and Senior Portfolio Manager for Wells Fargo Bank’s PCS. During his tenure with Wells Fargo, Don concurrently served on Wells Fargo’s National Asset Allocation Committee and National Investment Policy Committees. He also served as one of the members of the Investment Management Committee for Wells Fargo’s flagship equity portfolio, Signature Core.
Prior to Wells Fargo, Don served as Director of Research and Portfolio Manager for Securities Corporation of Iowa (SCI). Don directed research, allocation, investments and strategy for the firm. He served as Portfolio Manager for the SCI Traditional Value Equity, Blue Chip Bellwether Growth, Industry Select and Tactical Balanced investment strategies. SCI was acquired by Wells Fargo in early 2001.
Before being recruited as Director of Research for SCI, Don was Chief Sector Analyst and Editor for Ned Davis Research, Inc., one of the largest independent research organizations in the world. Don provided research and recommendations to institutional clients both national and international. Don has conducted research and developed decision-based asset allocation and individual stock buy/sell programs at the institutional level since 1988.
Don has a B.A. in Economics and earned his Chartered Financial Analyst designation in 1994. He is a member of the CFA institute.
Overview:
Title: Introduction to Smart Sector™ Equity Asset Allocation
Ned Davis Research, Inc. (NDR), any NDR affiliates or employees, or any third-party data provider, shall not have any liability for any loss sustained by anyone who has relied on the information contained in any NDR publication. In no event shall NDR, any NDR affiliates or employees, or any third-party data provider, be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of the information contained in this document even if advised of the possibility of such damages. The data and analysis contained in NDR’s publications are provided “as is” and without warranty of any kind, either expressed or implied. The information is based on data believed to be reliable, but it is not guaranteed. NDR DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. NDR’s reports reflect opinions of our analysts as of the date of each report, and they will not necessarily be updated as views or information change. All opinions expressed therein are subject to change without notice, and you should always obtain current information and perform due diligence before trading. NDR or its affiliated companies or their respective shareholders, directors, officers and/or employees, may have long or short positions in the securities discussed in NDR’s publications and may purchase or sell such securities without notice. NDR uses and has historically used various methods to evaluate investments which may, at times, produce contradictory recommendations with respect to the same securities. When evaluating the results of prior NDR recommendations or NDR performance rankings, one should also consider that NDR may modify the methods it uses to evaluate investment opportunities from time to time, that model results do not impute or show the compounded adverse effect of transaction costs or management fees or reflect actual investment results, that other less successful recommendations made by NDR are not included with these model performance reports, that some model results do not reflect actual historical recommendations, and that investment models are necessarily constructed with the benefit of hindsight. Unless specifically noted on a chart, report, or other device, all performance measures are purely hypothetical, and are the results of back-tested methodologies using data and analysis over time periods that pre-dated the creation of the analysis and do not reflect tax consequences, execution, commissions, and other trading costs. For these and for many other reasons, the performance of NDR’s past recommendations and model results are not a guarantee of future results. Using any graph, chart, formula, model, or other device to assist in deciding which securities to trade or when to trade them presents many difficulties and their effectiveness has significant limitations, including that prior patterns may not repeat themselves continuously or on any particular occasion. In addition, market participants using such devices can impact the market in a way that changes the effectiveness of such devices. NDR believes no individual graph, chart, formula, model, or other device should be used as the sole basis for any investment decision and suggests that all market participants consider differing viewpoints and use a weight of the evidence approach that fits their investment needs. Any particular piece of content or commentary may or may not be representative of the NDR House View, and may not align with any of the other content or commentary that is provided in the service. Performance measures on any chart or report are not intended to represent the performance of an investment account or portfolio, as some formulas or models may have superior or inferior results over differing time periods based upon macro-economic or investment market regimes. NDR generally provides a full history of a formula or model’s hypothetical performance, which often reflects an “all in” investment of the represented market or security during “buy”, “bullish”, or similar recommendations. This approach is not indicative of the intended usage of the recommendation in a client’s portfolio, and for this reason NDR does not typically display returns as would be commonly stated when reporting portfolio performance. Clients seeking the usage of any NDR content in a simulated portfolio back-test should contact their account representative to discuss testing that NDR can perform using the client’s specific risk tolerances, fees, and other constraints. NDR’s reports are not intended to be the primary basis for investment decisions and are not designed to meet the particular investment needs of any investor. The reports do not address the suitability of any particular investment for any particular investor. The reports do not address the tax consequences of securities, investments, or strategies, and investors should consult their tax advisors before making investment decisions. Investors should seek professional advice before making investment decisions. The reports are not an offer or the solicitation of an offer to buy or to sell a security. Further distribution prohibited without prior permission. Full terms of service, including copyrights, terms of use, and disclaimers are available at https://www.ndr.com/web/ndr/terms-of-service. For data vendor disclaimers, refer to www.ndr.com/vendorinfo.
