In our model portfolio, we are reducing our allocation to the healthcare and consumer staples sector...
Trading Bloc Positioning: US, Canada Markets Expensive, EEM and EFA Cheaper
08/24/2018 5:00 am EST
U.S. & Canadian markets present as the most relatively expensive while Emerging Markets (EEM), and the Eurozone Far East & Australasia (EFA) present as cheap (on annual routines), writes Ziad Jasani Sunday. He’s presenting at MoneyShow Toronto.
View my Market Strategy Session video here:
Recorded: August 17, 2018.
This chart compares major trading blocs back to the entire global equity market (ACWI), to determine which spaces are relatively cheaper or more expensive.
Why? Capital flows usually tilt towards relatively cheaper spaces.
The TSX presents as 2 standard deviations expensive, which implies the TSX is likely to under-pace the world on the way up and/or move faster down.
If markets rise, expect out performance from Equities out-side of North-America. If markets start to move down, expect North American markets to start moving down at a faster pace vs. the World.
Join Ziad at MoneyShow Toronto Sept. 15 when he discusses Portfolio Management Strategies for Active Investors. Information: ZiadJasani.TorontoMoneyShow.com
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