Three Quick Ideas
Friday, September 10th, 2021 Categories: Diversification, Equities, Japan, Market Timing, Rotation, United States
End of summer lull makes us cautious about big calls
We are always wary of making big calls on the basis of thin summer markets, so here are three quick ideas. First, Japan produced an important technical buy signal just before Prime Minister Suga announced his resignation. It is very similar to the one at the start of the Abenomics rally in 2012. Second, the recommended weight of US equities to the rest of the world is at a 10-year high and it does not normally hold this level for more than a month. Third, we think European industrials are out of line with US Industrials and potentially vulnerable.