This year the equity markets have been good with the S&P 500 Index (SPX) up 9.2% and Nasdaq 100 (NDX) up 5.3% through the end of March.
We have new “buy” signals this month for the S&P 500 Index, NDX, gold, and bonds. It is unusual for all these indexes to be buys at the same time. In my opinion, there is a lot of money in motion searching for higher equity and bond returns.
We believe the outlook is positive for many long funds. Our analysis indicates that all style-box indexes have positive momentum with small-cap ahead of large-cap. All sectors have positive momentum except that goldmomentum is negative. (We expect gold to go positive in early April.) Most of the world indexes have positive price momentum with Germany highest, followed by the U.S. and the U.K.
The U.S. dollar is increasing in value relative to other currencies. Emerging markets have negative price momentum at this time. Because the markets can turn quickly, be ready. May the market be with you.
