Prometheus ETF Portfolio

Weekly Update: 11.01.2024

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 moved to price incrementally higher odds of falling nominal growth, however, bonds remained under pressure as economic data surprised to the upside significantly this week. Commodities reversed their gains this week, and equities begun to show some weakness. Bond markets moved counter to these regime dynamics, suggesting potential moves ahead of us.

• Economic Data Monitor: Economic data momentum rose significantly this week, driven by outsized moves in data that has limited impact GDP conditions (home sales, consumer confidence). The latest jobs data continued to look consistent with a slowing economy, with payrolls weak and civilian employment showing persistent pressure. We are starting to see markets misprice the growth potential of the economy. It remains early days in this mispricing.