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<h2>We recommend the following trades in our Model Fund Portfolio:</h2>
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<p><strong>We are recommending the following trades in our Model Fund Portfolio:</strong></p>
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<ul><li><strong>Exit the 2% position in the MSCI ACWI Ex-U.S. SPDR ETF (symbol: CWI).</strong></li><li><strong>Initiate a 2% position in the Utilities Select Sector SPDR ETF (symbol: XLU).</strong></li></ul>
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<p><strong>With a rising risk of recession and continued weakness in our technical indicators, we have made the above changes to further bolster the defenses of the Model Fund Portfolio. With mounting global risks, we are exiting our international position which is facing major economic and geopolitical challenges in exchange for a more defensively-oriented Utilities holding. The net invested allocation of the Model Fund Portfolio remains unchanged at 44% after these changes.</strong></p>
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<p>The S&amp;P 500 traded higher this week following last week’s near-term oversold conditions.</p>
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<p>On the economic front, the ISM Services Index ticked higher by 0.2 points and remains in expansion territory for the time being. Conversely, consumer credit surged by a record $176 billion over the past six months as households struggle to keep pace with inflation. This was the fourth straight record high for this measure, as consumer have taken on debt at an unsustainable pace.</p>
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<p>The technical environment continues to confirm the high-risk nature of this market. Consistent, heavy downside market leadership has led to persistent bearish readings from our Negative Leadership Composite. Likewise, our Canary (in the coal mine) Index and our Gorilla Index have given back the majority of their summer rally gains. Finally, our Housing [Bubble] Bellwether Barometer is at risk of breaking a critical support level as mortgage rates just reached a fresh 14-year high of 5.9%.</p>
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<p>Given the further weakness on these fronts, today’s changes have incrementally added to the “safety-first” nature of the Model Fund Portfolio, while its net invested allocation remains defensively positioned at 44%.</p>
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