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Stadion Tactical Growth Fund Commentary May 2020

Every major index for U.S. equity was positive in May. International stocks rose, too, and though emerging markets lagged even they were up slightly for the month.  Even so, there seems to be increased speculation among financial professionals that there is a disconnect between current market movement and economic data. A widely reported observation from JP Morgan Chase CEO Jamie Dimon, is that recent stimulus is necessarily going to wind down, and he noted firmly, “you can’t prop up the stock market forever.”1

The Stadion Tactical Growth Fund’s allocation at the beginning of May was moderately conservative.  It held 65% U.S. Equities, 10% Short-term Fixed Income, and 25% Money Market. 

Due to some of our holdings moving down in our rankings we sold Small-Cap and half of the BioTech holdings on May 1.  This same day, we added a position in intermediate term U.S. Treasury’s.  On May 13 we sold one-quarter of our S&P 500 position to cash.  Small-cap ETFs rebounded back up in our rankings and on May 20 we added a 10% position.  At the end of May our portfolio was allocated to 57.5% U.S. Equities, 20% Fixed Income, and 22.5% Money Market.  A few U.S. Equity sector and individual international Exchange Traded Funds (AKA “Country ETFs”) are starting to show strength in our model and are being watched very closely for inclusion.

To view the most recent performance for the Stadion Tactical Growth Fund, click here.

Past performance is no guarantee of future results. Investments are subject to risk, and any of Stadion’s investment strategies may lose money. The investment strategies presented are not appropriate for every investor and financial advisors should review the terms and conditions and risks involved. Stadion’s actively managed portfolios may underperform during bull markets. Some information contained herein was prepared by or obtained from sources that Stadion believes to be reliable. There is no assurance that any of the target prices or other forward-looking statements mentioned will be attained. Any market prices are only indications of market values and are subject to change.

1https://www.bnnbloomberg.ca/finance-ceos-worry-markets-are-too-optimistic-about-economy-1.1442246

An International ETF is an exchange traded fund that specializes in foreign securities. A Country ETF specializes in securities of specific countries.

The S&P 500 Index is the Standard & Poor’s Composite Index of 500 stocks and is a widely recognized, unmanaged index of common stock prices.

One cannot invest directly in an index.

The Report’s commentary, analysis, opinions, advice, and recommendations represent the personal and subjective view of the author and are subject to change at any time without notice.

Risks

There are additional costs and potential risks associated with investing in domestic and international Exchange Traded Funds (ETFs). Investment in the Fund is subjective to investment risks, including, without limitation, market risk, management style risk, risks related to “fund of funds” structure sector risk, fixed income risk, tracking risk, risks related to ETF net asset value and market price, foreign securities risk, risks related to portfolio turnover and small capitalization companies’ risk. Since each Stadion fund is a “fund of funds”, an investor will indirectly bear fees and expenses charged by the underlying ETFs and investment companies in which a Stadion Fund invests in addition to a Stadion Fund’s direct fees and expenses. More information about these risks and other risks can be found in the Fund’s prospectus.

There are risks associated with the potential investment of the Fund’s assets in fixed income investments which include credit risk, interest rate risk, and maturity risk among others. These risks could affect the value of investments of the Fund, possibly causing the Fund’s share price and total return to be reduced and fluctuate more than other types of investments. Additional information about fixed income risks can be found in the Fund’s statement of additional information (“SAI”). Investment Objective: Seek long-term capital appreciation.

The Fund’s foreign investments generally carry more risks than funds that invest strictly in U.S. Assets including currency risk, geographic risk, and emerging market risk. Risks can also result from varying stages of economic and political development, differing regulatory environments’ trading days and accounting standards, and higher transaction costs of non-U.S. markets.

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An investor should consider the investment objectives, risks, and charges and expenses of the Stadion Funds carefully before investing. The prospectus contains this and other information about the Funds. A copy of the prospectus is available by calling Stadion Funds directly at (866) 383-7636 or Stadion Money Management, LLC., the investment advisor, at (800) 222-7636. The prospectus should be read carefully before investing.

The Stadion Funds are distributed by ALPS Distributors, Inc. An investment in the Funds involves risk, including loss of principal.