Global risk sentiment I see in the short-term: defensive asset classes relatively cheaper awaiting bond yields to be lifted this week, writes Ziad Jasani of the Independent Investor Institute.
Global Risk Sentiment
Long-Term (1st column chart) Equities & Bonds present as expensive, driven by nearly a decade of money printing and “market stimulation” by central banks.
Short-To-Mid-Term (3rd column) Defensive asset classes (below the S&P 500 line) present as relatively cheaper, but awaiting swing-highs on bond yields this week to be uplifted.
Higher risk asset classes (above the S&P 500 line) present largely as scattered.
Areas of opportunity short-term are the Eurozone Financials (EUFN), Low Vol (SPLV), Nasdaq (QQQ), EFEA (EFA), Euro Stoxx 50 (FEZ), EEM, PFF, LQD, TLT, XBB-T, FXY and GLD/SLV.
Overall configuration of the global risk-ladder is tilted to risk-off, where-if the S&P 500 is unable to sustain above 2,590 into week’s end we would look to close short-term positions.
And if we see higher risk assets getting further overvalued into week’s end, we would suggest not to chase the move, but rather sell-into-price strength.
We are in risk reduction mode, awaiting a -1% to -3% drawdown globally.
Watch Market Strategy video session recorded Monday, Nov. 13:
Join experts at the Independent Investor Institute for a three-hour deep dive on markets Saturday, December 2, 12 pm (EST). The session will be held online, click this link to register directly: CLICK HERE or send Ziad an email with your request: ziad.jasani@educatedtrader.com
