FATT - Reviewing Market Signals As Warnings Increase
- Investors are exceedingly exuberant about markets once again, with numerous analysts suggesting nothing but “blue skies” ahead.
- We set our expectations for a 5-10% correction between mid-June and July. With that window approaching and signals very close to triggering “sells” on both a daily and weekly basis, we used the rally this week to lighten our equity exposure and raise cash levels.
- Despite a sharp year-over-year increase in the latest CPI report, the bond market suggests deflation remains the more considerable risk. The latest CPI and Core CPI surged sharply.
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Reviewing Market Signals As Warnings Increase