Optimizer Update | March 2022

The events in Ukraine are overshadowing the slowing of economic growth ITR has been referencing for the past 6 months. Again, the economy is still growing--it is the pace of this growth that has slowed. The S&P 500 was facing inflation and interest rate policy headwinds prior to Ukraine and Russia being the main headline event.

The Optimizer A and B are performing well under these circumstances. See the most recent performance data here. While both are down from January 1st through February 28th, they are each down less than half of the S&P 500’s negative performance. This might be like saying we are the fastest turtle or the juiciest raisin. However, if we control downward volatility, we increase the odds of having successful long-term returns when we allocate the portfolio during more robust economics periods.

We are still going to be defensive for the time being which means exposure to consumer staples, consumer discretionary, healthcare, utilities, financials, and energy.

If you have any questions, please contact us.