March 5, 2024: We recommend the following changes…

In-line with last month’s strategy update in InvesTech Research, the absence of recession confirmation allows us to follow some cautious optimism, particularly in areas of the market that are more economically resilient. Some recent macroeconomic data show increasing evidence of a possible soft landing, yet at the same time reduce the probability of expected rate cuts.  While the chances of the Fed achieving this much-anticipated Goldilocks scenario are inherently difficult, we are using this incremental positivity to add to the following position: 

ProShares S&P 500 Dividend Aristocrats ETF (symbol: NOBL) is made up of companies that have increased their dividend for at least 25 consecutive years – regardless of economic conditions. This represents an opportunity to increase allocation to high-quality companies at an attractive relative valuation. 

As a result, we recommend the following changes to our Model Fund Portfolio:

• Increase the ProShares S&P 500 Dividend Aristocrats ETF (symbol: NOBL) from 12% to 16%.

The Model Fund Portfolio now has a net invested allocation of 53%, with the remainder (47%) held in short-term Treasurys or a money market fund.