The Day Hagan Catastrophic Stop model, as of today, has increased to 68.18%. The model indicates that investors should maintain their benchmark equity exposure.

The Portfolio is designed to invest in companies that we believe have the potential to deliver excess returns through positive economic profitability, solid balance sheets (quality), meaningful cash generation (profitability), and trading at considerable margins of safety (valuation). We believe these factors will continue to provide rational opportunities for the foreseeable future.

In February, rates markets were driven by a mix of softer inflation data, a slower but still expanding labor market, and heavy Treasury supply. The January CPI report, released on February 13, showed a 0.2% month-over-month rise and 2.4% year-over-year inflation, keeping the disinflation narrative intact.

International equities in February responded to uneven G20 growth data, steady but moderating inflation, and stable global rate expectations. Flash PMIs released during the month showed services activity continuing to anchor expansion across much of the developed world. The euro area composite index remained slightly above 50, driven by services, while manufacturing stayed weak.

In February, the U.S. stock market was shaped by a combination of Federal Reserve policy signals, mixed economic data, and pronounced sector rotation that reflected shifting investor expectations about growth and interest rates. 

The Day Hagan Catastrophic Stop model, as of today, has increased to 68.18%. The model indicates that investors should maintain their benchmark equity exposure.

The Day Hagan Catastrophic Stop model held steady at 59.09%. The model continues to indicate that investors should maintain their benchmark equity exposure.

The Smart Core Equity Portfolio is designed to invest in companies that we believe have the potential to deliver excess returns through positive economic profitability, solid balance sheets (quality), meaningful cash generation (profitability), and trading at considerable margins of safety (valuation). We believe these factors will continue to provide rational opportunities for the foreseeable future.

International equities broadly outpaced U.S. stocks in January, with markets outside the U.S. advancing at a stronger relative pace than major U.S. benchmarks. Developed foreign markets in Europe and the Pacific generally saw more pronounced gains, while emerging markets also started the year strongly, benefiting from a softer dollar and global diversification flows.

Entering February, global fixed-income markets are navigating a "mid-to-late-cycle" environment characterized by a transition from aggressive policy easing to a more measured, data-dependent approach. For U.S. investors, the primary narrative is the bear steepening of the yield curve.

U.S. equities entered 2026 with a mixed but generally constructive tone, and beneath a relatively calm headline index, the 11 cap-weighted S&P 500 sectors told a story of rotation rather than runaway risk‑on. Technology and Communication Services remained in the spotlight as investors continued to bet on artificial intelligence and cloud infrastructure, but leadership was less one-sided than in 2025.

The Day Hagan Catastrophic Stop model held steady at 59.09%. The model continues to indicate that investors should maintain their benchmark equity exposure. Many of our indicators are situated near neutral levels. If the current decline (the SPX is just 2.3% below the all-time high) shows signs of becoming significant, our indicators are poised to signal risk-off.

The Day Hagan Catastrophic Stop model held steady at 59.09%. The model continues to indicate that investors should maintain their benchmark equity exposure.

The Day Hagan Catastrophic Stop model held steady at 59.09%. The model continues to indicate that investors should maintain their benchmark equity exposure. Yesterday’s selloff did not significantly impact the model. Keep in mind, the model is designed to identify potentially large moves, not dips or minor corrections.

The DH Smart Value Portfolio is designed to invest in companies that we believe have the potential to deliver excess returns through positive economic profitability, solid balance sheets (quality), meaningful cash generation (profitability), and trading at considerable margins of safety (valuation).

The Day Hagan Catastrophic Stop model held steady at 59.09%. The model continues to indicate that investors should maintain their benchmark equity exposure.

As of the end of December 2025, the U.S. economic outlook is mixed but remains broadly stable. Growth indicators have softened, but underlying activity has shown resilience amid ongoing macro pressures, including slowing labor momentum and uneven consumer demand.

In December, global equity markets displayed a coordinated year-end rally, driven by the finalization of central bank pivots and "window dressing" by institutional investors. Unlike the divergence seen in November, developed markets largely moved in tandem, buoyed by liquidity injections and clarity in 2026 monetary policy paths.

Global fixed income markets shifted decisively in December, driven by the synchronized dovish pivot of Western central banks. The dominant theme was the "bull steepening" of yield curves in developed markets—a scenario in which short-term interest rates fall faster than long-term rates, steepening the yield curve.

The Day Hagan Catastrophic Stop model held steady at 59.09%. The model continues to indicate that investors should maintain their benchmark equity exposure.