U.S. Equity indexes hit all-time new highs last week, although it may be interesting to note that only 70% percent of members within the S&P 500 are participating in the rally compared to 85% since January.
Money Market remains stable in its ranking, currently at 33. You will notice that Small & Mid-caps are losing some momentum indicating that the broader market is not as healthy as the level of the S&P may suggest. The Russell 2000 is up 0.60%, giving up most all of its gains for the year. The Fed is due to increase interest rates on Wednesday and the market has been pricing it in the rate hike over the last few weeks; which may be the reason for the consolidation we have been in recently. Overall we may be in a small corrective phase and it appears that a short-term pullback may be in the cards. We would see this as a buying opportunity due to the intermediate and longer-term trends are still positive. Currently the S&P 500 L/S strategy is fully invested and the US Equity L/S strategy is still in cash. 3/10/2017
Trends within the markets are often the most reliable indicators of upcoming asset price movements. From Larry Livingston to today’s data driven world, “the trend is your friend” has made and saved many investors money. In this weekly report, Global View Capital Management, along with its research partners, lay out some of the most important market trends for investors.
Our ETF Rank Quickview is designed for financial advisors who use a tactical or trend following approach to investing. Included are bullet points on market activity, a ranking of trending asset classes, as well as, intermediate and long-term trend signals.
The rally in equities expanded last week as new asset classes became more favorable investments. Technology shares surged to the top of our rankings despite a tough Friday. Europe, which matched U.S. GDP growth in 2016, also showed that the old continent still has some life left.
Oil Bets, Europe & a Busy Economic WeekView Post
U.S. Equity investors have been favoring Small Cap and Mid Caps since the Presidential election. We expect that trend to continue as fiscal policies will favor domestic producers in 2017. This trend has a ton of momentum and investors will want to be aware of how to invest in these sectors.