APRIL 3, 2020

 

A Closer Look at Our Tactical Positioning Targets

Each day, Meeder analyzes and ranks over 70 different factors from our short, intermediate, and long-term models. The dynamic statistical model incorporates factors covering macroeconomic, fundamental, trends and technical analysis to estimate the potential reward and marketplace risk of the equity markets. The Meeder Spectrum, Muirfield, Balanced, Moderate Allocation, and Conservative Allocation funds utilize this strategy for the Defensive Equity portion of their portfolios. The Defensive Equity Strategy guides the allocation of each fund’s equity sleeve and the actual proportion of equity investments in any fund will vary depending on the investment objectives of the fund.

Quick Take

 One factor within our short-term model identified an extremely large amount of inflows to bearish ETFs.  This bearish fund flow activity reached its highest level since April 2009, a sign of extreme panic selling. This type of panic selling has historically occurred around market turning points.

 The intermediate-term model remains fairly positive, as multiple factors indicate that investors have become significantly bearish.  As a reminder, we view this negative sentiment from a contrarian perspective.

Despite improvements in the short- and intermediate-term models, market risk remains near its highest level since 2009. This is the largest contributory factor to our defensive position.

We understand that times like these create uncertainty for many investors.  Please be assured that we remain committed to our model-driven and systematic approach during this turbulent market. Click here to stay up to date on the Coronavirus.

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Past performance is not a guarantee of future results. All investments carry a certain amount of risk and the Funds cannot guarantee that they will achieve their investment objectives. Loss of money is a risk of investing in a mutual fund. The Funds are subject to stock market and liquidity risk. The Funds are also subject to foreign investment risk. These risks, as well as others, may occur during the time you hold shares of the funds.

Investors are advised to consider carefully the investment objectives, risks, charges and expenses of the Meeder Funds before investing. The Meeder Funds prospectus contains this and other information about the funds.

To request or receive a copy of the Meeder Funds prospectus, contact Meeder Client Services at (800) 325-3539
Meeder, Meeder Funds, and Muirfield Fund are registered trademarks of Meeder Investment Management, Inc. Adviser Dealer Services, Inc., Member FINRA.

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