ETF Based Major Asset Class Trend Indicators For The Week of November 8
11/08/2010 1 comments
It is also believed that QE2 will result in US dollar devaluation and that in turns has led so called ‘commodity stockpiling’ propelling Gold and other commodities (such as agricultural commodities) to continue their recent ascent.
The only major trend change worth watching is the prices of long term treasury bonds, especially 10+ years which have continued weakness. It illustrates the market's belief that in the longer term, the Fed's actions will result in higher inflation.
| Asset Class | Symbol | 8-Nov Trend Score | Direction |
| US Equity REITs | VNQ | 57% | ^ |
| Frontier Market Stks | FRN | 47% | ^ |
| Emerging Market Stks | VWO | 34% | ^ |
| Gold | GLD | 32% | v |
| International REITs | RWX | 28% | ^ |
| US Stocks | VTI | 25% | ^ |
| Emerging Mkt Bonds | PCY | 20% | ^ |
| US High Yield Bonds | JNK | 19% | ^ |
| International Developed Stks | EFA | 15% | ^ |
| Intermediate Treasuries | IEF | 14% | ^ |
| Commodities | GSG | 11% | ^ |
| US Credit Bonds | CFT | 11% | v |
| International Treasury Bonds | BWX | 8% | ^ |
| Mortgage Back Bonds | MBB | 7% | ^ |
| Total US Bonds | BND | 6% | ^ |
| Municipal Bonds | MUB | 6% | ^ |
| Treasury Bills | SHV | 0% | ^ |
Top Five Indicators
Bottom Five Indicators
All the bottom five asset classes are fixed income, pointing to an increasing risk appetite.
In conclusion, other than long term treasury bonds, assets exhibit their continuous trends and have become stronger since QE2 announcement.
labels:investment,
Symbols:EEM,VNQ,FRN,VWO,IYR,ICF,GLD,RWX,VTI,SPY,IWM,PCY,EMB,JNK,HYG,PHB,EFA,VEU,IEF,TLT,GSG,DBC,DBA,CFT,BWX,MBB,BND,MUB,SHV,AGG,
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