Prometheus ETF Portfolio
Weekly Update: 01.31.2025
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 three highly liquid ETFs, readily available to any investor with a brokerage account.
Market Monitor: Over the last week, macro markets rose in aggregate, with stocks falling, commodities falling, treasuries rising, and gold rising. Over the last week, markets have moved to incrementally price a rising inflation environment. More broadly, our market regime monitors are showing a dominant market regime probability of falling growth, rising inflation, and rising liquidity.
Economic Data Monitor: Economic data momentum rose, driven by PMIs, pending home sales, jobless claims, and personal consumption. Over the last week, Single Family Home Sales was the data release that macro markets took the most signal from with stocks rising, bonds falling, and commodities falling. Per usual, FOMC played a significant role in moving markets, with stocks bonds falling in response to the Fed.
Asset Class Signals: Signal strength continues to shift. We have seen increased signal strength in stocks, sufficient to increase equity exposures. The portfolio is now biased towards nominal growth.