Prometheus ETF Portfolio

Weekly Update: 10.11.2024

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: 

• Market Monitor:  Over the last week, markets have been priced in reflationary conditions, with equities and commodities rallying at the expense of treasuries. The market regime odds of inflationary conditions have risen significantly in the recent past, counter to the ongoing evolution of economic fundamentals, which continue to suggest an economy that is Slowing, But Growing. These dynamics create potential regime instability.

• Economic Monitor:  Economic data momentum remained flat this week. Over recent weeks, headline data has largely begun to look better relative to expectations, with data momentum inflecting upwards. These dynamics look inconsistent with the economy's ongoing cyclical picture and may present future opportunities for our future strategies. 

• Performance Update:  Our long-only portfolio was down by 0.18% this week on the back of weak bond returns, but remains within 2% of All-Time Highs.