September 21, 2023: We recommend the following changes to our Model Fund Portfolio:

Due to the growing risks highlighted in last week’s issue of InvesTech Research and today’s new reemergence of bearish Distribution in our Negative Leadership Composite, we are making another incremental defensive adjustment in the Model Fund Portfolio. More background on these trades and the market’s deterioration will be provided in tomorrow’s Weekly Hotline Update.

We recommend the following portfolio changes:

• Reduce the VanEck Vectors Gold Miners ETF (symbol: GDX) from 6% to 4%. We are reducing this position due to technical weakness and U.S. dollar strength.
• Trim the Industrial Select Sector SPDR ETF (symbol: XLI) from 8% to 7%. We are reducing this fund’s allocation given its cyclical nature and ongoing exposure to the weak manufacturing sector.

The Model Fund Portfolio now has a 48% invested allocation with the remainder (52%) held in short-term Treasurys or a money market fund.