Attention Clients, this is an important post to take in... Thanks for reading!
The following are excerpts from the latest entries to our internal market log.
In summary.
1. Since the election:
- 6 of the US major equity sectors are up, 5 are down.
- The US is the only major regional equity market in the green... The others featured are notably in the red.
- Among the major industrial commodities we track, all have sold off significantly, save for natural gas.
- Among the ag commodities we track, 8 are up, 6 are down.
- US Treasuries have taken quite the hit (as interest rates popped higher), Investment grade corporate bonds are flat, junk bonds are up slightly.
2. Foreign equities are all-time cheap relative to the US.
3. US equities are, by themselves, at (or near) all-time expensive valuations.
3. Zip Recruiter warns about the state of the labor market and, therefore, the economy.
4. Me (via an email with a friend) on the prospects for commodities going forward, the nat'l debt, and the history of the early stages of world-changing technologies.
Bottom line, the rip-roaring rally of the past week has been the definition of concentrated. I.e., not so great for balanced portfolios that diversify across asset classes, sectors and regions... But, make no mistake, the setup, as we ultimately move into the next cycle, offers many historically-attractive opportunities for macro-centric portfolios.
Read on for context.
