Markets buoyed by talk of trade progress, but economic numbers disappoint, notes Bill Baruch....
View from Toronto: Global Risk Assessment This Week
08/08/2018 4:05 pm EST
Currently, higher-risk assets present on the cheaper side of annual routines while defensive sectors have enjoyed a temporary flattening of yields, writes Ziad Jasani Monday from Toronto.
Global Risk Sentiment
Looking at the third column to the right we see a comparison of higher risk asset classes and defensive asset classes back to the S&P 500 (SPY) on an annual basis.
Comparison to the S&P 500 creates a “risk-ladder” where market risk is considered neutral.
When we see more green above the SPY-line (middle line) and more red below we have a general “risk-on” signal; and vice-versa - red above, green below would be “risk-off.”
Currently, higher-risk asset classes are generally on the cheaper side of annual routines.
Defensive asset classes have enjoyed a temporary flattening of yields, and currently present as mostly neutral.
This allows for indecision to risk-on to present this week for Equities.
For the Global Equity Market to rise, U.S. Treasury yields must rise, but the USD must remain flat allowing the World-Ex-US, trade war related spaces and Commodities to do the heavy-lifting alongside Technology.
Join Ziad at MoneyShow Toronto Sept. 15 when he discusses Portfolio Management Strategies for Active Investors. Information: ZiadJasani.TorontoMoneyShow.com
Related Articles on MARKETS
Alphabet (GOOGL) is the umbrella company that owns Google (which includes Android and YouTube}, Nest...
With politicians on both sides of the aisle calling for drug price controls, it has been a challengi...
The recent cold spell has caused natural gas to rally, but will it be followed by a mild December li...