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Prometheus Research
Asset Allocation: December 2024
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Asset Allocation

Asset Allocation: December 2024

Video Update

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Prometheus Research
Dec 12, 2024
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Prometheus Research
Prometheus Research
Asset Allocation: December 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.

If you’re unfamiliar with our approach to macro, we have a series of notes that offer our mechanical understanding of macro conditions. You can find these Macro Mechanics notes below:

  • Growth

  • Inflation

  • Liquidity

  • Integrating Growth, Inflation, & Liquidity

  • What is Beta?

  • What is Alpha?

  • Where Do Recessions Come From?

  • What’s Priced In? The Bridge Between Beta & Alpha

  • What Drives Bond Markets?

We highly recommend reviewing these notes as they form the conceptual base on which our systems are built.

Turning to our latest Asset Allocation views, our primary takeaways are below:

  • Prometheus Macro Monitors: Our high-frequency measures of economic activity suggest an environment that is slowing, inflationary pressures are neutral, and liquidity growth is peaking.

  • GDP Nowcast: GDP growth remains positive on the back of strong consumer spending.

  • Market Discounting: Earnings expectations are rich, inflation expectations are rich, and monetary policy expectations are fair.

  • Market Regime Monitors: Macro markets are consistent with rising growth, inflation, and liquidity.

  • Asset Class Signals: Alpha signals across assets are low, but stocks show the strongest signal amongst assets.

  • Allocations: SPY (44%), TYA (21%), DBC (0%), and Cash (35%).

Watch the whole video update here:

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