I expect the S&P 500 index to trade between the recent high and low for a while, several weeks o...
Video View from Toronto: Global Risk Sentiment This Week
11/15/2017 12:00 pm EST
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: email@example.com
Related Articles on STRATEGIES
If the bond market gets follow-through from today, I would expect the market to get a shake of the t...
It’s okay to sit on your hands—and cash. Sometimes return of capital is better than retu...
With indicators continuing to print bullish, we simply need US CPI data to miss consensus and allow ...