Reintroducing Equity Exposure on Improving Trend Signals - 05/09/25

Portfolio Adjustments

• Aggressive Risk Adjustments

  • Diversified Portfolios

    • Current Stock Exposure: 89%

    • Benchmark Stock Exposure: 85%

    • Sell: -10% Schwab Short-Term U.S. Treasury ETF (SCHO)

    • Buy: +2.5% VanEck Gold Miners ETF (GDX), +2.5% Vanguard FTSE Europe ETF (VGK), +2.5% iShares Latin America 40 ETF (ILF), +2.5% iShares MSCI EAFE Small-Cap ETF (SCZ)

  • CarbonLITE Portfolios

    • Current Stock Exposure: 89%

    • Benchmark Stock Exposure: 85%

    • Sell: -10% Schwab Short-Term U.S. Treasury ETF (SCHO)

    • Buy: +2.5% VanEck Gold Miners ETF (GDX), +2.5% Vanguard FTSE Europe ETF (VGK), +2.5% iShares Latin America 40 ETF (ILF), +2.5% iShares MSCI EAFE Small-Cap ETF (SCZ)

  • ETF-Only Portfolios

    • Current Stock Exposure: 89%

    • Benchmark Stock Exposure: 85%

    • Sell: -10% Schwab Short-Term U.S. Treasury ETF (SCHO)

    • Buy: +2.5% VanEck Gold Miners ETF (GDX), +2.5% Vanguard FTSE Europe ETF (VGK), +2.5% iShares Latin America 40 ETF (ILF), +2.5% iShares MSCI EAFE Small-Cap ETF (SCZ)

• Moderate Risk Adjustments

  • Diversified Portfolios

    • Current Stock Exposure: 58.5%

    • Benchmark Stock Exposure: 60%

    • Sell: -5% Schwab Short-Term U.S. Treasury ETF (SCHO)

    • Buy: +2.5% VanEck Gold Miners ETF (GDX), +2.5% Vanguard FTSE Europe ETF (VGK)

  • CarbonLITE Portfolios

    • Current Stock Exposure: 58.5%

    • Benchmark Stock Exposure: 60%

    • Sell: -5% Schwab Short-Term U.S. Treasury ETF (SCHO)

    • Buy: +2.5% VanEck Gold Miners ETF (GDX), +2.5% Vanguard FTSE Europe ETF (VGK)

  • ETF-Only Portfolios

    • Current Stock Exposure: 58.5%

    • Benchmark Stock Exposure: 60%

    • Sell: -5% Schwab Short-Term U.S. Treasury ETF (SCHO)

    • Buy: +2.5% VanEck Gold Miners ETF (GDX), +2.5% Vanguard FTSE Europe ETF (VGK)

• Conservative Risk Adjustments

  • Diversified, CarbonLITE, and ETF-Only Portfolios

    • No risk adjustments.

We wanted to provide you with a quick update on the recent changes within your portfolio and the rationale behind them.

As part of our active portfolio management approach, the SCM Investment Committee continuously evaluates trends across global asset classes using our internal relative strength model. This data-driven approach allows us to identify the strongest-performing investments with sustained uptrends.

Recently, global equities—represented by the ETF ACWI—have demonstrated a renewed uptrend following previous market volatility triggered by President Trump’s tariff announcement. Our relative strength indicators have now signaled an opportunity to reintroduce equity exposure, prompting us to adjust our portfolio strategy accordingly.

Source: StockCharts.com

In alignment with these signals, we have repositioned our holdings by shifting away from short-term bonds and reentering equity markets. This adjustment ensures that our strategy remains responsive to evolving market conditions while seeking to optimize long-term returns.

We remain committed to an adaptive investment strategy, closely monitoring trends to identify the strongest opportunities. As the market environment continues to evolve, we will stay disciplined in managing risk while capturing growth potential.

You’ll receive a trade confirmation from Charles Schwab reflecting these transactions. If you'd like to walk through these trades or discuss the positioning in more detail, we are happy to schedule a time to talk.

We’re here to help you stay grounded, informed, and positioned for the long-term—even when the market isn’t making it easy.

Warm Regards,
SCM Investment Committee