Prometheus ETF Portfolio

Weekly Update: 11.22.2024

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. 

We visualize our live performance below:

Turning to our latest ETF Portfolio update, our latest observations are as follows:

• Market Monitor: Over the last week, markets moved to price in rising nominal growth conditions. This rise has begun to look inconsistent with the ongoing changes we see in the economy. The economy is likely to slow on the back of a slowing labor market and weakening investment. Meanwhile markets are pricing stronger nominal growth conditions. A divergence is building in markets.

• Economic Data Monitor: Economic data momentum continued to push higher this week. In particular, housing sentiment, jobless claims, and existing home sales contributed to higher data momentum. However, we think it is essential to note that the latest housing data continues to show softness across permits, starts, and completions.