Last week spread damage to the equity market stabilized at highly negative levels. The Speedometer score stayed in negative territory, indicating that a significant shift in asset allocation continues. We caught the bounce very well and enhanced returns. But caution is warranted from higher levels, as per video below.
All the Models are in Risk Off (invested in bonds), , giving us pure risk off. Investment in TLT is probably wrong. Far better to remain in the short end of the curve, which has discounted most of the Fed hikes coming, or even in cash, looking for opportunities to regain exposure in equities of sharp dips.
Individual shares have been pummeled and some very bad damage has been done to a variety of leading shares that have been flying high. I encourage you to work with the Database to see if your portfolio needs to be changed in composition. Hight quality shares are likely to outperform high beta names. The name of the game has changed from Growth to Capital Preservation.
A video of my detailed expectations for the near term can be viewed at https://youtu.be/pzFxT3zc5gk