From the desk of Steve Strazza @sstrazza and Louis Sykes @haumicharts
At the beginning of each week, we publish performance tables for a variety of different asset classes and categories along with commentary on each.
Looking at the past helps put the future into context. In this post, we review the absolute and relative trends at play and preview some of the things we’re watching to profit in the weeks and months ahead.
As we discussed in our latest report, bears are running out of any substantial fuel to support their position.
And despite the arrival of some long-awaited selling pressure last week, that absolutely remains the case.
From a more tactical standpoint, though, we’re seeing early signs of some volatility moving into what is a seasonally weak post-election month.
In this post, we’ll play “devil’s advocate” and lay out some of the more bearish developments we could find out there right now. You know… the kinds of things that could start to change our opinion.
But for now, over any meaningful timeframe, we remain buyers, not sellers of stocks…
Meanwhile, improving risk appetite continues to be a big theme.
In a recent post, we illustrated how investors are lurking further and further down the risk spectrum in an attempt to generate alpha. This is definitely something we’d expect during periods of outperformance from risk-on and cyclical assets.