Dynamic Asset Allocation Model
The NAAIM Dynamic Allocation Model: 3/18/2019
Below is an example of how one might incorporate the indicator boards. The approach shown below is designed to provide the current equity allocation for a balanced tactical asset allocation model with a base target of 60/40 stocks/bonds.
The overall intent of the model is to keep equity exposure in line with current conditions.
The model below is for illustrative and informational purposes only and does not in any way represent an endorsement by NAAIM or an investment recommendation. The model is merely an EXAMPLE of how indicators can be grouped to create a guide to market exposure based on the inputs from multiple indicators/models.
Below are the historical equity exposure readings for the NAAIM Dynamic Asset Allocation Model. Note that the difference between the equity exposure reading and 100% is the allocation to fixed income.
This report is not investment advice, and is for INVESTMENT PROFESSIONAL USE ONLY.
Returns for the indicators presented are a hypothetical implementation of the model signals. When a signal is given, the closing price for the S&P 500 is used. Hypothetical returns do not reflect actual trading. Please note that hypothetical test results do not take into account market conditions which could adversely affect management decisions.
Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including any of the strategy reflected above) will be profitable, equal any corresponding indicated historical performance level(s), or prove successful.