Market Target Strategy (MTS)

Strategy Overview

The Milwaukee Company’s Market Trend Strategy (MTS) is a rules-based, trend-following investment strategy that invests in exchange traded funds (ETFs) that collectively represent the global stock and bond markets. 

 

MTS manages risk by periodically adjusting the amount invested in the ETFs that comprise its fund universe.  More specifically, MTS uses The Milwaukee Company’s Market Trend Indicator (MTI) to assess the prospects for the U.S., foreign-developed, and emerging stock and bond markets.  Model portfolio weights are adjusted depending on the outlook for each region.

 

MTI seeks to expose the portfolio to rising market trends while minimizing assets with downside trending behavior.  Market trends are classified as bullish, bearish or neutral.  Asset classes with a bullish outlook are overweighted and those with a bearish outlook are underweighted.  Model portfolio allocations apply when a neutral signal prevails.

Model Portfolio Weights

Model Portfolio Weights.jpg

Components

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  • Broad Asset Class Funds

MTS utilizes broad asset class Exchange-Traded Funds (ETFs) to provide diversified exposure to significant components of the global market. The amount allocated to these ETFs is determined by the three market indicators.

 

  • Market Trend Indicator (MTI)

MTI compares the relative performance of the U.S foreign-developed, and emerging stock markets to their respective bond markets over the prior 12 months. If stocks have out performed bonds that is regarded as a bullish signal, and vice-versa. 

 

  • Accuracy

MTS has been designed to emphasize the accuracy and stability of the signal it generates to identify current market conditions, rather than attempting to precisely time a market top or bottom.

The Milwaukee Company℠ is a tradename of Estate Counselors, LLC. The information provided herein is believed to be correct and has been obtained from sources that we consider reliable, but we do not guarantee that this information is accurate or complete.  All expressions of opinion reflect our judgment at the present time, but are subject to change. Nothing found herein is intended to be a substitute for personal investment advice. The investments discussed herein are risky in nature and involve a substantial risk of loss, and we do not in any way warrant or guarantee the results you will experience.