Weekly Risk Report 10/09/2009
It’s been a busy two weeks. The international content of our portfolios have traded in all but Japan and the intl telecom sectors. Further, we’ve seen domestic sales in the high yield bond funds, consumer staples sector, REIT sector, energy sector, precious metals and the basic materials sector. Finally, we saw a spike in the India Rupee which triggered a small sale of that fund.
All this has been against a background of moderately higher risk. The past few weeks have shown continued influx of sideline money returning to the market place. This excessive ‘demand’ for equities has led to unsustainable price rallies in common stocks on the NYSE as well as the NASDAQ exchanges. As of this week our Speculation component remains bearish while two others remain bullish and one neutral. Overall we’re in the middle of the “average risk” range. This is not a bad place to be considering the massive rally we’ve seen in stocks since the March lows.
