Structure update: major asset classes
Sep 28, 2015
in Relative Strength
Approaching month / quarter end, none of the major asset classes are showing any strength relative to cash.
The only market with any shorter-term upside momentum (see Return B above) are U.S. Long Term Treasuries. For the bull case, TLT needs to hold above the June low. Failure to do so would turn the trend down.
Despite the recent sell-off in U.S. equities, the relative weakness of foreign stocks continues. We have been monitoring this for potential trend change, but there are no signs of that yet.
The usual caveats:
- This is a short example of the type of the analysis we do to assess market structure in order to take tactical positions. We favor diversification at the strategy level and any tactical positions form just a part of the whole.
- Probabilities play out in the long run, in the short term anything can happen.
- In no way should any of the above be considered investment advice.
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