AugurMax Asset Allocation Changes 2026-05-31
Equity exposure was maintained at the end of May after stocks around the globe continued their climb after 2026-03-30 nadir. In the usual fashion, the VIX moved down sharply as socks rose. Stocks outperformed the other broad asset classes handily. Current stock exposures are above their longer-term average. Bond exposures show a drop and they are less than their long-term average weighting. The prescribed Currency exposure is in line with the previous month and is above it;s long term weighting. Commodity exposure is slightly negative and marginally below its longer term weighting.
Equity additions were highly selective as Japan and the Euroland got the biggest raises. Canada and the UK were cut substantially. The VIX exposure moved down and its exposure is now neutral. Interest sensitive US REITs were added to quite a bit again and are now a long.
A few Bond asset classes had big subtractions including Europe and Japan. US High Yield was added to but Emerging Markets was bumped up the most. Cash exposure was unchanged.
There were minor shifts within commodities where Corn was cut the most; Oil rose marginally.
Currency returns were mostly down in May as money flowed towards the (safe haven) US Dollar. The Mexican Peso was the only currency rising vs. the dollar. The Mexican Peso and the Euro were added to the most while the Yen and the GB Pound were cut.
May’s global stock rally continued the sharp gains from April. Stellar earnings reports (84% of US companies reported Q1 positive surprises) bolstered the buy-the-dip strategy even as the energy crisis and inflation loomed. Value stocks underperformed growth stocks dramatically as tech stocks trounced all the other economic sectors. Bonds were mostly up as Emerging Markets and UK Gilts lead the pack. US Treasuries underperformed US Tips again hinting at a heightened 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 strong May 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.
