The Day Hagan/Ned Davis Smart Sector™ with Catastrophic Stop strategy seeks to enhance returns over a buy-hold equity benchmark by overweighting and underweighting S&P 500 sectors. This strategy is based on the Ned Davis Research (NDR) proprietary sector model. Through the use of NDR’s Catastrophic Stop model, the strategy mitigates the effects of major market declines by reducing equity market exposure.

This is an in-depth discussion that covers:

  • Smart Sector™ is an objective, weight-of-the-evidence approach. The strategy starts by over- or underweighting the eleven S&P 500 sectors by quantitatively defining each sector’s probability of outperforming the S&P 500 index (total return) using NDR’s sector-specific fundamental, technical, economic, and behavioral indicators.

  • Smart Sector™ employs the NDR Catastrophic Stop model that identifies periods of high risk for the broad U.S. equity market through time-tested indicators measuring breadth, trend, fundamentals, economics, interest rates, sentiment, and volatility.

  • Smart Sector™ manages risks by remaining fully invested unless the NDR Catastrophic Stop model is triggered, whereupon the equity-invested position is reduced to 50%. When the NDR Catastrophic Stop model moves back to bullish, indicating lower risk, the strategy immediately returns to being fully invested.

Sponsors of this webcast may contact registrants. This webcast is for financial professionals only.


Donald Hagan, CFA

Chief Investment Strategist & Partner


Brian Sanborn, CFA

Senior Product Director - Investment Solutions at Ned Davis Research Group


Title: Introduction to the Day Hagan/Ned Davis Research Smart Sector™ with Catastrophic Stop Webinar 

Original Date: Thursday, July 11, 2019

Duration: 1 hour, 1 minute


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