Prometheus ETF Portfolio

Weekly Update 9.13.2024

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: 

Our key takeaways are:

• Market Monitor: Over the last week, markets moved to price in incrementally higher nominal growth conditions. A significant portion of this performance were mean reversion forces after an extremely strong and persistent pricing of slowing nominal growth. The broad trend remains consistent with an economy that is expanding, but slowing.

• Economic Data Monitor: Economic data momentum improved modestly this week. Major growth data was relatively light this week, thus there is a limited signal in these latest moves. The latest inflation data continues to show trends consistent with a path towards the Fed’s 2% inflation objective.

• Performance Updates: Our long-only portfolio was up 1.83% this week on the back of strong bond market returns. Our ETF Portfolio is once again at All-Time Highs following this performance.