January 16, 2026: We Recommend the following change to our Model Fund Portfolio
With the InvesTech Negative Leadership Composite in neutral territory, we are actively seeking lower-risk profit opportunities. Value stocks continue to be attractive as they have exhibited strength to start the year, and they are relatively insulated from the overvaluation and concentration risk of the broader market. As a result, we are recommending the following change in the Model Fund Portfolio:
- Increase the T. Rowe Price Mid-Cap Value Mutual Fund (symbol: TRMCX) from 5% to 7%.
Following these changes, the net invested equity allocation of the Portfolio is 55%. This is comprised of 60% long positions, 5% in an inverse index ETF, 5% in an intermediate Treasury ETF, and 30% cash held in short-term Treasurys or a money market fund.