Author: BFI Advisors
Covestor model: Behavioral Long-Short
Disclosures: None
Since May, our analysis has suggested no obvious trade. Therefore, we have been heavily in cash.
Over the past several weeks we have received a signal that the next big trade is Asia. Therefore, we are in the process of making significant allocation to specific Asian markets.
In addition, we have received signals that precious metals are bullish. As of the beginning of August, the US stock market has fallen significantly over the past two weeks. Our analysis suggests that the US stock market will recover during the month of August. It is possible for some further downside, but we see it as limited.
Our long-term outlook for the US stock market is neutral to somewhat bearish, but we do see a recovery from the lows during August.
