Another great and final macro technical report for 2012 from the Swiss team. I’m in the process of my annual migration to the mountains so i’ll simply post up the report for now.
I’ll comment more meaningfully tomorrow but quickly I believe the rotation is in full motion against a back drop of multi asset class yield compression and more meaningful asset allocation away from fixed income towards equities. If these early fund flow indications are correct and follow through historic algorithms on over bought will break as will rotation correlations and prior inverse correlations etc.
The recent past is used by technicians to determine the future but this dangerous in a world of vast capital migrations and endless liquidity injections by central banks. I would rather miss short term moves so long as i get the big moves correct. Please re-read and consider this issue when determining your own allocations. This is a very important point that we can discuss on the forum. There is no excuse to be surprised when this occurs it is mathematically inevitable in fact. (Happy to explain, discuss the logic and maths).
The very best to all. If you are also embarking on a journey safe travels to you and your family.
Rich
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