Courtesy of Chris Kimble.
Portfolio construction and the game whack a mole seem to have some in common of late….Key assets have been looking for a place to hide!
The 3-pack below reflects that the US Dollar and Government Bond ETF TLT have broken below steep rising channels. At the same time the S&P 500 is could be slipping below a steep rising support line.
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If you have been looking for a place to hide the past couple of weeks, it might surprise a few that the Euro ETF FXE and done pretty darn well, with Crude Oil not far behind. Government bond ETF TLT which had a stellar last year, has had a rough go of it lately!
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The declines in bonds and the US$ are near extremes for such a short period of time. It wouldn’t surprise me to see a move in the opposite direction (for a few days) for the assets that are at both extremes!
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