World Stock Watch

**Market Insights and Fund Performance**

As of June 30, 2024, the Guggenheim Directional Allocation Fund has adjusted its allocation to 50% Defensive and 50% Market, down from 100% Market allocation. This shift is attributed to the deterioration of the Leading Economic Index (LEI) and Consumer Confidence, despite the positive market momentum.

**Economic Indicators**

The LEI decreased by 0.5% to 101.2 in May, marking its fourth consecutive decline. The index is down 2% for the six-month period from November 2023 to May 2024. The ISM Index of New Orders, building permits, and consumer expectations were the largest negative contributors, while weekly hours worked in manufacturing and stock prices made positive contributions.

The Consumer Confidence Index declined to 100.4 in June, driven by consumers’ pessimistic outlook on future income and business conditions. Although inflation expectations eased, concerns about high prices and the US political environment persisted.

**Market Performance**

The Dow Jones U.S. Large-Cap Total Stock Market Index returned 3.80% for the quarter, driven by better-than-feared earnings, a cooling labor market, and a benign inflation reading. The S&P 500 rose 4.28% on a total return basis, with the Technology sector posting the strongest performance, gaining 13.81%.

**Fund Performance**

For the quarter ended June 30, 2024, the Guggenheim Directional Allocation Fund Class A (load waived) underperformed its benchmark, the Dow Jones U.S. Large-Cap Total Stock Market Index, by 154 basis points, returning 2.26% vs. 3.80% for the benchmark.

**Top Holdings and Contributors/Detractors**

As of June 30, 2024, the top 10 holdings of the fund accounted for 38.62% of net assets. The top contributors to the fund’s relative performance during Q2 2024 were Alphabet Inc. (GOOG), NVIDIA Corp. (NVDA), and Broadcom Inc. (AVGO). The biggest detractors were Dexcom Inc. (DXCM) and NetApp Inc. (NTAP).

**Risk Considerations**

Investing in the fund involves risk, including the possible loss of principal. The fund’s strategy depends on the effectiveness of its quantitative model in screening securities for inclusion in the index. The factors used in the model may not be predictive of a security’s value, and the fund may have a lower return than if it were managed using a fundamental investment strategy or an index-based strategy that did not incorporate quantitative analysis.