From the desk of Willie Delwiche.
The cyclical weight of the evidence tilts toward opportunity.
Our tactical risk management model remains constructive even in the absence of a breadth thrust (though such an event would certainly help the bullish case).
While not doing much from an asset class perspective, we have made some changes in our dynamic portfolios. Highlights include:
- Getting more constructive on Europe and the new highs coming from the UK.
- Shortening the duration of our fixed income holdings as we start to upward pressure on interest rates..
- Making a clean (Technology-related) to dirty (Materials-related) rotation in our Tactical Opportunity portfolio.
Overall we continue to position these portfolios not for what could or should happen but consistent with the message of the market and an eye on what is happening.
