Tuesday, August 22, 2017
Asset Rotation and the SPY
Utilities (XLU) were bottoming in early July and were in an uptrend since then.Consumer discretionary ETF (XLY) topped in late July after a rejected breakout and is in a downtrend since then. After these worrisome signs SP500 (SPY) had a false breakout in the beginning of August. Now both XLU and XLY are at an important level.
Monday, August 7, 2017
Valuations at glance
Some pundits say that valuations are very stretched. I don't think so because of two reasons:
- The earnings estimate is very ambitious that seems to be underpinned by economic data.
- We cant see any inflationary pressure that could trigger significant increase in L/T yields and discount rates.
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