How to Pick a Tactical Manager? Tactical asset allocation (TAA) has come back in fashion recently. Investors were stung, badly, by the financial crisis of 2008. No one wants to go through an experience like that again, which has led to renewed interest in TAA. A new group of tactical managers called ETF strategists has … Read more
The Macro Opportunities Strategy invests equally in the Dyamic Munlti-Asset, Dynamic Sector, and Dynamic Income with two times leverage. It aims to outperform HFRI Global Macro Index with a low correlation with traditional asset classes. Its investment universe includes US equities and bonds, international equities, emerging market equities and bonds, real estates and MLPs. The … Read more
Despite the hiccup last week, the US stock markets are still flirting with record highs. Yesterday, Goldman Sachs has revised its year-end target for the S&P 500 to 2,050, up from the previous target of 1,900. Against the backdrops of the Fed’s highly accommodative monetary policy, strong corporate earnings, and improving job markets, Individual investors … Read more
Is Small Cap in Correction? Last week, the Russell 2000 Index had fallen 8.75% from recent peak of 1,208.65 reached on March 4. On May 15, the index once fell below 1,087.79 during intra-day trading, the 10% threshold of the widely-used definition of correction, two days after the Dow Jones industrial average and the S&P … Read more
Is EM Ready to Rebound? Investors in emerging markets equities had a disappointed year in 2013. The MSCI Emerging Market Index dropped over 2%, while the S&P 500 rallied 32%. In recent months, however, emerging market (EM) equities showed signs of life. Since the lows in early February, the EM index has risen by 12%. … Read more
Should Wall Street Be Concerned About Ukraine? Last week, Ukraine crisis was on headline again. G7 countries have approved a new round of sanctions against Russia. In addition to the current measures such as asset freezing and visa bans against Russian high level officials, the sanctions may target individuals with influence in sectors of the … Read more
Last week, the stock markets bounced back amid the strong retail sales and upbeat earnings report from Citi Group and Yahoo. S&P 500 Index rallied 2.7% and has recovered most of losses in April. U.S. retail sales recorded their largest gain in one and half years in March at 1.1%, generating optimism that growth may … Read more
Recently, a scary chart created by market pundit, Tom DeMark, has stirred Wall Street. He drew a striking parallel between the current market performance and the 1929 crash. The sell-offs in last few weeks tended to confirm his bearish prediction (see Chart One). So far in April, S&P 500 Index tumbled 2.9%, even worse, the … Read more
General Market Conditions – Risk Switcher(TM) Julex has developed a four-factor Risk Switcher (TM) model to provide assessment on the general market conditions. Normally, in a “Risk On” regime (bull market), the economy is expanding, market trend is going up, market volatility is moving lower and market liquidity is plenty. In a “Risk Off” regime … Read more
Top Stories Last Week • Five of Thirty US Banks Failed Stress Tests Citi Group, Zions Bancorp, HSBC North America, RBS Citizen’s Financial and Santander Holdings USA failed stress tests. The Fed rejected their capital plans. Citi Group shares tumbled by 5% after the news. • Durable Goods Orders Rose, but Capex Looked Weak The … Read more