From the desk of Steve Strazza @Sstrazza and Ian Culley @Ianculley
It’s no secret.
As investors, we’ve been rewarded for buying stocks and commodities over bonds for more than a year now. And this will most likely remain the case, as more evidence suggests we’re in an environment that favors risk assets.
The copper/gold ratio hitting new seven-year highs, AUD/JPY testing its year-to-date highs, and cyclical stocks assuming leadership all point to an increasingly risk-on tone.
But for some of us, it’s not as simple as selling bonds and walking away. In some scenarios, we must have exposure to the bond market.
If that’s the case, we want to focus on the riskier areas of the market, just like we’re doing with other asset classes.
Let’s look at a few charts that direct our attention to the strongest areas of the bond market. [Read more…]