How to outperform the S&P

I’ve been very vocal about the fact that we are currently experiencing slowing growth and inflation.

For inflation, we saw the Producer Price Index and the Consumer Price Index come in lower than expected.

In terms of economic growth, Michigan's Consumer Sentiment has been slowing to an eight-month low.

Portfolio
We noticed that growth and inflation were about to slow a little over a month ago. This caused us to close our technology and commodities exposure and build a more defensive portfolio.

Being aware of the macro dynamic is the key to outperformance.

Since we noticed and reacted to this transition, The Minimalist Portfolio is up 5% compared to the S&P 500.

The best places to allocate capital in the current regime are:

⁃ Reits (XLRE)
⁃ Consumer Staples (XLP)
⁃ Healthcare (XLV)
⁃ Utilities (XLU)