iQ Monthly Risk On / Risk Off Model
No down years since 1980
10.19% max drawdown
20% downside capture ratio
CLICK HERE for a complimentary Model Fact-card.
The iQUANT.pro Monthly Risk On / Risk Off Model seeks to provide positive returns regardless of the directions of the economy or financial markets by tactically allocating between stocks and bonds on a monthly basis.
THERE IS NOTHING LIKE THIS…ANYWHERE!
The iQUANT.pro Monthly Risk On / Risk Off Model is one-of-a-kind…
The Model utilizes the following four non-correlated factors to determine an allocation between stocks (Risk On) and bonds (Risk Off).
Technical (price to moving average)
Macro (movement of the US Dollar)
Valuation (S&P 500 P/E and Earnings Yield)
Seasonal (six months in, six months out)
HOW DOES THE MODEL WORK?
Each of the aforementioned factors account for 25% of the Model’s allocation. If all four of the factors are “risk on”, then 100% of the Model is allocated to stocks. If 2 of the 4 indicators are “risk on”, then 50% of the Model allocates to stocks while the other 50% allocates to bonds.
When the Model allocates to stocks, it utilizes the following (monthly) large-cap screen:
Start with the largest 750 locally-traded stocks
Sort by Operating Earnings Yield + Share Buyback and select the top 20%
Sort by Earnings Growth Persistence and select the top 20%
Sort by Earnings and Price Momentum and select the top 10