Resilient Trends Keep Systematic Models Tilted Toward Stocks
Poor breadth has been a risk but for now trends favor stocks over bonds and commodities
Subscriber-only updates:
Blue Heron Portfolio Update: Our trend-following systematic asset allocation portfolio continues to overweight equities and avoid commodities.
Weekly Chart Pack: Breadth has been a mess, but price trends have proven resilient. Whether yesterday’s surge can move the needle on our tactical models remains to be seen.
November Weight of the Evidence: The scales suggest risks outweigh opportunity. The market has struggled to build on bounces and sustain strength.
Finally . . . A preview of things to come: Next year we will be formally introducing our Blue Heron Sector Rotation Portfolio. This portfolio will rotate among S&P sectors based on absolute trends and relative leadership. In a mixed trend environment (like right now), it overweights rising trends and underweights falling trends.