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In This Issue
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| The Total Portfolio Solution |
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| The Total Portfolio Solution whitepaper examines CMG's Enhanced Modern Portfolio Theory (EMPT). EMPT adds liquid alternative investments as a third asset class to stocks and bonds. And it employs “strategic tilts” that increase equity exposure when stocks are attractively priced, and decrease exposure when equities are expensively priced. |
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| On My Radar: Data Dependent – Fed Dependent |
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| On my risk watch is the potential for a sovereign debt crisis originating in Europe. The debt-to-GDP ratios are staggering, entitlements are unmanageable and unemployment is high. The economic chasm between the northern haves and the southern have nots is blatantly clear. The people have had enough. The UK exit is the start not the finish. |
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| Trade Signals – Oversold, Extreme Pessimism ST Bullish, Risk High |
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| High Yield hit stop-loss levels and is back to a sell. Investor pessimism moved to extreme. Such periods of extreme pessimism have historically been short-term bullish for equities. High-quality bonds remain in a buy signal. The equity market uptrend remains in place (though weakening). The CMG Ned Davis Research Large Cap Momentum Index continues to suggest caution. |
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| #TweetsOfTheWeek |
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Follow CMG all week long for market insight and analysis. Re-tweets are not endorsements. For information only. Follow @askcmg and @SBlumenthalCMG. |
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