Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

Watch Stocks Triumph In Latest Asset Allocation Battle

by January 19, 2024
January 19, 2024
Watch Stocks Triumph In Latest Asset Allocation Battle

The RRG above shows the rotation of various asset classes against VBINX (Vanguard Balanced Index Fund) as the benchmark.

The long red tails pushing deep into the lagging quadrant are for Commodities (DJP&GSG) and $USD. And the long Green tail deep inside the leading quadrant and moving lower is for BTC.

The first takeaways from this RRG are:

BTC is in a very strong relative uptrend vs. all other asset classes but is currently going through a setback, potentially offering a “buy-the-BIT-dip” scenario in the next few weeks.The long red tails deep inside the lagging quadrant are for Commodities (DJP&GSG) and $USD. These asset classes are in a strong relative downtrend. The slight pickup in relative momentum (JdK RS-Momentum) is not meaningful enough (yet) to warrant any action.

Zooming in on the center of the RRGm highlights the rotations for Stocks and Fixed-income asset classes and shows a strong rotation for stocks, and it has been doing that for weeks already.

The tail on SPY rotated through weakening, after a sting through leading, and is now moving back into the leading quadrant. As you know, this is one of the strongest possible rotations as it signals the start of a new up-leg within an already rising relative trend.

The Fixed-income tails are moving in the opposite direction, except for Corporate bonds.

Government Bonds (GOVT) rotated back into the lagging quadrant from improving and is now back at a negative RRG-Heading, moving further into the lagging quadrant.High-yield bonds (HYG) have just crossed back into the lagging quadrant after a full rotation through leading and weakening, starting a new relative downtrend.Corporate Bonds is currently the strongest asset class in the fixed-income domain. Crossing into leading but doing so at a negative RRG-Heading.

All in all, these rotations present a very clear picture in favor of stocks over bonds.

The direct comparison of SPY against IEF underscores this strength with a solid breakaway from the consolidation period in play since Q4-2023. The break to new highs unlocks fresh upside potential for more outperformance of stocks.

#StayAlert, –Julius

0
FacebookTwitterGoogle +Pinterest
previous post
Charting the Course: SMEs and the UK Vape Industry’s Regulatory Environment
next post
Viewer Questions: How Does the Fed Manipulate the Yield Curve?

You may also like

Fresh Look at Long Bonds

September 14, 2023

Sector Rotation Signals an Important Week Ahead for...

September 22, 2023

Strong Rotation To Value Stocks

November 1, 2022

Here’s What the Markets are Telling Us –...

March 18, 2023

200-Day Moving Average Confirms Bearish Phase

April 17, 2025

Carvana Stock Is Picking Up Speed. Is Now...

July 15, 2024

MEM TV: Can the Markets Continue Higher on...

July 14, 2023

At the Edge of Chaos: Short Sellers Get...

September 11, 2022

Dividends: Are Adjusted or Unadjusted Charts the Way...

November 23, 2022

Rising Rates Suggest Weaker Stocks – Here’s What...

January 6, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Silver’s Surge is No Fluke—Here’s the Strange Ratio Driving It

      June 6, 2025
    • Friday Feature: Incubate Debate

      June 6, 2025
    • Risch urges ‘top to bottom’ USAID spending review after waste, fraud exposed

      June 6, 2025
    • Universities in Libertarian Land

      June 6, 2025
    • Elon Musk may speak to Trump aides in push to calm feud

      June 6, 2025
    • Everyone Talks About Leaving a Better Planet for Our Children: Why Don’t We Leave Better Children for Our Planet?

      June 6, 2025

    Categories

    • Business (8,149)
    • Investing (2,013)
    • Politics (15,545)
    • Stocks (3,131)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved