LSA Revisions June 2017

Private Client Revisions – (Inclusive of the NTF Models)

LSA will be making revisions to the following portfolios:

  • Bear Market Entry
  • Bear Market Entry TDA NTF
  • Cautious Bear Plus
  • Cautious Bear Plus Schwab NTF
  • Cautious Bear Plus TDA NTF
  • Private Client
  • Private Client Fidelity NTF
  • Private Client Schwab NTF
  • Private Client TDA NTF

These are the only models that we are making changes to at this time.  The revision allocation and notes have already been posted to the website and we will be posting the revision video today.  LSA is targeting June 12th to implement these changes.

*As a reminder, the Revision Explanation Presentation/Video is posted in the “News & Announcements,” section on the LSA Beta home page.

Investment Rationale: 

LSA is recommending the replacement of Catalyst Hedged Futures Strategy in the Private Client, Bear Market Entry, and Cautious Bear Plus models to address some under-performance and ongoing struggle since the February sell off.  The rationale for the pullback in February can be found online.  To read the full report from Catalyst in February and to obtain a better understanding of what was happening with the fund log on to http://lsabeta.com and  click here to read the full article.  As markets continue to be fully valued and 2018 headwinds remain relevant the IPC will be recommending funds in the model that help reduce risk and provide solid downside protection.  Although the IPC continues to believe that recession is not eminent in 2017 we do believe that the probability of a recession in the next couple of years has increased greatly over the last two quarters.  The IPC will be looking to slowly reduce some risk from the portfolios throughout 2017.  We believe such model changes could be particularly helpful during conditions of weakness for equities and/or other equity-correlated risk assets.

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