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Cyclicals for Short Term Alpha

January 15, 2021 Many advisors have asked us our view on what broad market US equity theme they should favor in the near term for their client portfolios. On a relative basis, we believe our  Cyclicals Portfolio (which has a lot of value-oriented companies within financial, material, energy, and industrial spaces) is uniquely positioned (relative to our other solutions) as the economy  continues to normalize in 2021. In the report below, we backtested Astoria’s Cyclicals Portfolio (description included below) versus the SPDR® S&P 500® ETF Trust (SPY). The key observation in the 13-year backtest is that Cyclicals outperformed SPY in the following years:

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