Weekly Asset Allocation Highlights
- The out-performance of domestic assets continued last week
- A 60/40 mix of purely US assets vastly out-performed a global version
- US small cap stocks had an up week as well as US bonds
- REITS had been recuperating but last week was a setback despite steady US rates
- International stocks continue under-performing despite cheaper valuations
Currencies:
- The USD keeps chugging along notching weekly wins
- EM currencies continue their pattern of depreciation
- The rubble had an especially tough week as further US sanctions are taking a bite
- Among the majors, sterling took the biggest hit despite an increase in ST rates
- Second big down week in a row for pound
Commodities:
- Grains are getting whipsawed despite presidential assurances of price supports
- Oil is also getting whipsawed by political tensions between the US and Iran
- Gold and Silver continue a downtrend with little sign of relief especially as ST interest rates keep climbing higher
- Lumber prices are breaking down due to over-valuation and a possible dispute with Canada over newly imposed tariffs
This Coming Week:
- Q2 earnings in the US almost done – good season for most, good US growth
- Watching the USD – huge effect on international markets especially
- International equities keep losing ground to US stocks despite superior fundamentals
- Growth keeps outperforming Value – turning point might not happen unless expectations for rising rates stabilize
- Watching agricultural commodities for trade war effects
To read our full weekly report please click here
Eric J. Weigel
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