AugurMax Asset Allocation Changes 2026-07-31
Equity exposure was raised at the end of July as stocks around the globe took a breather from their ascent — the additions were highly selective. VIX exposure moved up offsetting the upward move in the stock exposures. Stocks underperformed the other broad asset classes except bonds. Current stock exposures are above their longer-term average. Bond exposures dropped precipitously and they are well below their long-term average weighting. The prescribed Currency exposure rebounded after a generally good showing in July. Commodity exposure was pushed down from a neutral stance at the end of June and is below its longer term weighting.
Equity additions were concentrated as the UK, Canada, and Australia got the biggest raises. The Euroland and Japan were reduced but US Small Cap was cut substantially. The positive VIX exposure represents a negative bet on US equities. Interest sensitive US REITs dropped quite a bit.
All but JGBs were reduced and US Investment Grade and Tips were cut the most. Cash exposure was essentially unchanged.
There were quite a few shifts within commodities where Oil was brought up while Gold, NatGas, and Corn were cut.
Currency returns were up across the board in July as money continued to flow out of the US Dollar. The Japanese Yen was cut and substantial raises were made to all others.
July’s global stock rally paused from the sharp gains from April -June. Value stocks greatly outperformed growth stocks once again as tech stocks finally took last place for the month. Bonds returns were also negative around the globe with the US leading the charge down. While dropping too, US High Yield and JGBs fared the best. US Treasuries underperformed US Tips hinting at a higher inflation situation (see breakeven inflation rates). US Large Caps are now more than 52% above their April 2025 lows (see worst drawdowns) and hedge funds reported mostly negative July returns. The prescribed changes herein are largely influenced by our ECO methodology. Performance results (on a stand-alone basis) for assets like Gold and others using our ECO metrics are shown here.
