Welcome to Prometheus ETF Portfolio. The Prometheus ETF Portfolio aims to allow everyday investors to access an investment solution that combines active macro alpha, passive beta, and strict risk control, all in an easy-to-follow, low-turnover solution. We aim to achieve strong risk-adjusted returns relative to cash, with limited capital drawdowns in depth and duration. We do this in a highly accessible package, which rotates between five highly liquid ETFs, readily available to any investor with a brokerage account. Without further ado, let us dive into our assessment of macroeconomic conditions:
Our key takeaways are:
Market Monitor: Over the last week, markets moved to price in incrementally higher odds of rising inflation. A significant part of this move looks consistent with markets pricing in a reflationary path, post and extremely aggressive initial easing by the Federal Reserve. This reflationary impulse looks inconsistent with ongoing cyclical dynamics in the economy.
Economic Data Monitor: Economic data momentum remained flat this week. Over recent weeks, headline data has largely begun to look better relative to expectations. The economy continues to grow. However, cyclical limitations and profit pressures are likely to keep a lid on this pace of growth. If markets deviate from this path there will be potential alpha opportunities.
Performance Updates: Our long-only portfolio was up 0.37% this week on the back of strong gold & equity market returns. Our ETF Portfolio is once again at All-Time Highs following this performance.