AugurMax Asset Allocation Changes 2026-04-30
Equity exposure was maintained at the end of April after stocks around the globe soared. The VIX moved down after four months of gains. Stocks outperformed the other broad asset classes handily. Current stock exposures are above their longer-term average. Bond exposures show a small drop and they are less than their long-term average weighting. The prescribed Currency exposure jumped from a neutral weighting. Commodity exposure is neutral and marginally below its longer term weighting.
Equity additions were highly selective as Emerging Markets, US Small Caps, and the Euroland got the biggest raises. Japan and Australia were cut substantially. The VIX exposure moved up and its (small) long exposure essentially represents a counter bet on the US stock market. Interest sensitive US REITs were cut quite a bit again and are now a short.
A few Bond asset classes had big subtractions including US Investment Grade, and Ten Year Treasuries. Tips were added to the most. Cash exposure moved down a bit.
There were minor shifts within commodities where Corn was cut the most; no commodities were added to.
Currency returns were up across the board in March as money flowed away from the (safe haven) US Dollar. The GB Pound and the Yen were added to the most while the Loonie and the Swiss Franc were cut.
Global stock returns gained considerable ground in April after big losses in March. Stellar earnings reports (84% of US companies reported Q1 positive surprises) bolstered the buy-the-dip strategy as the energy crisis and inflation still loomed. Value stocks underperformed growth stocks as tech stocks trounced all the other economic sectors. Bonds were mostly up as Emerging Markets and US Junk Bonds 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 45% above their April 2025 lows (see worst drawdowns) and hedge funds reported strong April 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.
