Markets in November reminded investors that even in calmer conditions, discipline matters more than prediction. After a volatile third quarter driven by interest rate uncertainty, the fourth quarter began with a steadier tone: yields eased modestly, corporate earnings beat cautious expectations, and global equities regained their footing.
At Blue Grasshopper, our process doesn’t rely on headlines or forecasts. We follow the data and adjust only when the relative strength of funds tells us to. The November rankings triggered a few selective changes, incremental refinements rather than wholesale shifts, consistent with our focus on steady outperformance and controlled risk.
Equity Portfolios: Staying with Strength
The core growth and momentum strategies continue to lead, supported by solid earnings from large technology and consumer names. The data favored maintaining exposure to U.S. growth and momentum funds while replacing one large-cap growth strategy that slipped to a Sell ranking with a stronger peer in the same category.
International equities remain mixed: developed markets are steady, while emerging markets continue to lag. The global blend fund maintained its position thanks to diversification benefits, though we continue to monitor its trend closely.
Fixed Income Portfolios: Short and Selective
Interest rates remain high enough that short-duration bonds still deliver attractive real yields without the volatility of longer-term Treasuries. The relative strength model reinforced that view again this month. We reduced exposure to intermediate Treasuries and replaced one core bond fund with a short-term income fund offering better total-return momentum. The overall bond allocation now emphasizes flexibility and credit quality rather than duration bets.
Taxable Accounts: Efficiency First
In taxable portfolios, we prioritize long-term compounding and after-tax efficiency. High-dividend strategies continued to lag and were rotated out in favor of growth-oriented replacements that minimize taxable distributions. The short-term bond sleeve remained unchanged, as all current holdings held Buy or Hold rankings and continue to deliver solid risk-adjusted performance.
The Bigger Picture
Our approach is intentionally quiet in months like this. When markets stabilize and the data show consistency, the best move is often to let the winners run. November’s refinements were modest but meaningful, aimed at capturing the strongest trends without adding risk or triggering unnecessary turnover.
Staying systematic is the key. Momentum does not last forever, but process-driven investing compounds over time. As we move toward year-end, Blue Grasshopper portfolios remain well positioned: growth-focused, volatility-aware, and ready to adapt when the rankings say it is time.
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Guillaume Decalf
CEO & Founder Blue Grasshopper