Prometheus Asset Allocation

December Allocations

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 and reading them will further your understanding of our work.

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

• Macro Monitor: Markets moved to price in elevated nominal growth and liquidity over the last month. Meanwhile, the economy remains in a slowing growth and inflation environment, with peaking liquidity. We have begun to see a slowing in business investment, which is unlikely to reverse in the near term. Against this backdrop, our Asset Allocation program saw gains of 1.91% over the last month. This was driven by equity gains and offset by commodities.

• Asset Allocation: Consistent with our systematic fundamental outlook, the Prometheus Asset Allocation Strategy is currently positioned as follows: