Sage Advice Tactical ETF Quarterly Market Review 1Q2020

The first quarter will be long remembered for the alarming rise of COVID-19 outside China into the developed world and how fears of a global pandemic turned into reality. Supply chain interruptions, border closings, and social distancing measures effectively shut down a large portion of the global economy. This resulted in equities and yields falling sharply as markets rapidly priced in a global recession. Equity and fixed income markets saw an improvement in returns and liquidity toward the end of Q1 due to fiscal and monetary policy initiatives; however, given continued uncertainty and macro risks, we have a lower-beta tilt within equities with a greater allocation to defensive-oriented sectors and a focus on quality. Within fixed income, we believe returns will be driven by spread tightening and relative value opportunities.