SWM sustainable portfolio fact sheets, April 2022: defensive positioning pays off handsomely in April

April was a strong month from a relative performance point-of-view:  whilst all our portfolios saw declines, these were much less than the declines in our benchmarks, due to the highly defensive positioning we put in place towards the end of March. For example, our equity ETF portfolio was down 4.15% vs. the equity benchmark down 7.2%, with similar figures for our growth ETF portfolio. With strong gains in early May, we have now made up the bulk of the underperformance we saw in the early part of 2022. At the start of May, we went tactically overweight fixed-income: we believe that inflation fears are mostly priced in now, with international government bonds being the most oversold (using the RSI technical indicator) in 15 years on a weekly chart view.

We also went back to full weighting in equities, due to oversold conditions, but will take this exposure back off the table when the current bounce is over. Our intermediate technical indicators have given multiple confirmations that the long-running equity bull market is rolling over into a bear market, and hence a defensive / underweight equity stance is warranted overall.

Please follow this link to read Secure Wealth Management’s monthly ETF portfolio review for April 2022.