Defensive Asset Allocation

DAA (Defensive Asset Allocation) is Keller & Keuning's canary-driven successor to their earlier momentum work, built around a 12-asset global universe and a dedicated pair of "canary" assets whose health determines how defensively the portfolio should be positioned. When both canaries show negative momentum, DAA moves entirely to its strongest bond holding. When just one canary is struggling, the portfolio splits — half into its top-ranked equities and diversifiers, half into safety. When both canaries are healthy, DAA commits fully to an equal-weighted basket of its strongest risk assets. By using breadth across two independent stress signals rather than a single switch, DAA aims to distinguish a genuine broad-based downturn from an isolated pocket of weakness.

DAA uses no leverage. For more details, see Defensive Asset Allocation.