This article provides an update on the monthly moving averages we track for the S&P 500 and the Ivy Portfolio after the close of the last business day of the month. The Ivy Portfolio The Ivy Portfolio is based on the asset allocation strategy used by endowment funds from Harvard and Yale. It is an equally weighted portfolio constructed with 5 ETFs that feature a mix of different asset classes. By allocating across different asset classes, diversification is achieved, and risk is reduced. The different ass ...

Ivy Portfolio Overview - The Ivy Portfolio is based on the asset allocation strategy used by endowment funds from Harvard and Yale, constructed with 5 ETFs to achieve diversification and reduce risk [2][5] - The portfolio consists of domestic stocks, international stocks, bonds, real estate, and commodities [10] Ivy Portfolio Strategy - The strategy involves creating a diversified portfolio with equal weight across major asset classes, calculating a 10-month moving average of closing prices, and adjusting positions based on whether funds close above or below their moving averages [3][5] - At the end of September, all five ETFs in the Ivy Portfolio remained in an "invest" position, as none closed below their 10-month or 12-month simple moving averages [5][7] S&P 500 Performance - The S&P 500 closed September with a monthly gain of 3.5%, marking the fifth consecutive month of gains, and closed 10.3% above its 10-month simple moving average [8][10] - The index also closed 10.9% above its 12-month simple moving average, indicating a strong performance and maintaining an "invest" position [12] Moving Averages Strategy - Utilizing a moving average strategy can effectively manage the risk of severe losses during bear markets, with the S&P 500's performance since 1995 demonstrating the strategy's effectiveness in capturing upside while reducing losses [9][10] - The 10-month exponential moving average (EMA) has produced fewer whipsaws compared to the simple moving average, closing 9.2% above its 10-month EMA in September [13] Conclusion - All three moving average approaches (10-month SMA, 12-month SMA, and 10-month EMA) remained in an "invest" position at the end of September, reflecting a positive market trend [14]