Sector Ratings and Model Portfolio Update

The Grindstone Intelligence Sector Outlook is based on our top-down technical approach. These ratings reflect our views over the coming month.

We’re upgrading our view on Energy to Equalweight, given a likely rotation into value over the coming weeks. Real Estate is being downgraded to Underweight, joining Utilities. We see no reason to adjust our Overweight opinions on the Information Technology and Industrials sectors.

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The Grindstone US Equity Model Portfolio is a hypothetical allocation designed to align with our Sector Outlook and seeks to outperform the S&P 500 Index over the long-term. Our positions are chosen with investment horizons ranging from a few weeks to several months. The Model will invest only in exchange-traded funds that track sectors, industries, or categories of stocks. No individual stocks or cash positions will be used in the Grindstone US Equity Model Portfolio. Changes to the model will be communicated via email to subscribers, and official ‘trades’ will be executed at the next closing price. Fund performance will cause portfolio weights to drift between updates.

We’re making the following changes to the model portfolio, primarily reflecting our sector ratings update. The changes will be effective at the closing print on July 5. The table below details the adjustments and the new positioning. Note: the symbol for RGI, the Invesco S&P 500 Equal Weight Industrials ETF, has changed to RSPN.

Please reach out with any questions. We’re happy to clarify any of our opinions, but the nature of our publication prevents us from providing personalized advice. For those questions, please contact a financial advisor.

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