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Investor Resources emphasizes assets in the first two asset classes as long as they do not fail the "cash bogey" check. Positions in weaker asset classes should be monitored for technical deterioration that would indicate a sale to preserve capital and reduce risk. In Investor Resources, Inc.'s opinion, any asset class that ranks lower than cash should not be retained. As of February 8,2012 Investors have become more tolerant of risk evidenced by the strengthening of international equities above cash. Other factors for the asset class have shifted from Avoid to Caution. Commodities and Fixed Income are essentially equally ranked with only a slight edge for Commodities in the "risk-on" rally.
As of January 25, 2012 Whipsaw or Flip-Flop, the technical ranking remain close and unstable. Positions 3 and 4 have switched again. Domestic equities are viewed by many analysts as over-bought - highly priced relative to the recent trading range. Waiting for a pull-back may provide a better price to add positions.
As of January 22, 2012 The "cash bogey check" turned positive for International Equities but remains in 6th position as an asset class.
As of January 10, 2012 The "cash bogey check" turned positive for Domestic Equities as the Bullish Percent of the NYSE continued to improve. Sector exposure should be supported by positive relative strength.
As of December 27, 2011 Commodities continued weakening as investors anticipate reduced demand in Europe and Asia.
As of November 25, 2011 Selling has been sufficient for US Equities to fail our "cash bogey" requirement. Broad market deterioration appears much like the conditions that preceded the October 2008 decline. Rumors from Europe continue to roil global markets. “Better to have stop and go, than no go at all.” - George Soros
As of November 21, 2011 Foreign Currencies added Money Market or US Dollar to the allocation. However, the trends remained negative.
As of November 16, 2011 Commodities shifted into #2 position with additional weakening in international equities. Commodities still fail the "cash bogey" requirement; therefore, trends are not sufficient to justify adding commodities to a portfolio.
As of October 24, 2011 Short term signals for the leading three assets are very tightly grouped resulting in a new ranking.
As of October 20, 2011 Optimism for a European Banking System solution and the Fed restarting a stimulus program combined with some positive earnings reports have pushed Domestic Equities up notch to favored status. Commodities continue declining connected to lower growth estimates for China.
As of October 14, 2011 Trendless markets may cause quick rotation among asset classes. The differentials between the first three classes is very narrow. Currencies and Commodities remain in negative trends.
As of October 13, 2011 Domestic equity strengthened enough yesterday to pass the cash bogey check. If the trend continues, it will move back into 2nd place. As of October 3, 2011
Foreign Currencies moved to #2 but remain in a negative trend on 10/3/2011.
This suggests that even long-term inestors not hold international exposure as of 9/22/2011.
Domestic equities failed to outperform Cash on August 2nd.
Commodities failed to outperform Cash on May 5th.
As of September 22, 2011
This suggests that even long-term inestors not hold internation exposure as of 9/22/2011.
Domestic eqities failed to poutpermorm Cash on August 2nd.
Commodities failed to outpermorm Cash on May 5th.
As of August 8, 2011
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