JUSA - Weekly Market Pulse: All Or Nothing Investing

• Falling growth does not mean the economy is contracting. It merely means that the rate of increase is slowing. How much it slows is something we can't know yet, but it is exactly what we've been expecting for months as we watched bond yields drop.
• One reason I think the current environment may prove to be short-term is that the rate of decline in the 10-year Treasury yield is slowing. The 3-week and 1-month rates of change have turned positive already.
• A rising dollar is generally not positive for real assets - gold or other commodities and real estate. We have reduced the allocations to those assets in our portfolios over the last few months due to changes in momentum, and now the dollar market confirms that choice.
• The things we watch for clues about future economic performance are not flashing warnings right now. The yield curve is positively sloped, the 10-year Treasury rate is almost double where it was a year ago, credit spreads are well-behaved,and the CFNAI shows an economy growing slightly above trend.

For further details see: