Asset Allocation: November 2024
Video Update
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:
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:
Macro Monitor: Markets saw significant macro volatility this month, largely driven by geopolitical tensions coming from the Middle East. This drove oil prices, and in turn, commodity prices, higher. This oil price shock negatively impacted both stocks and bonds. Bonds, in particular, suffered as market expectations for interest rate cuts faded very significantly. As we have noted throughout the year, bonds continue to be their own worst enemy, and bond market participants continue to price in policy easing that is not warranted by the macro data. Equities have begun to look increasingly mispriced in terms of earnings, but not enough to trigger an asset allocation shift.
Asset Allocation: Our Asset Allocation program