Weekly Commentary
February 17, 2010
As we move further into the quarter, we are beginning to see signs that the market could be in transition from short term negative to positive trend. Several of our indicators have begun to move in a positive direction, albeit from a negative level, and those which monitor investor sentiment have actually given positive indication. This of course indicates that small caps are outperforming large caps, which is a positive.
Even with the markets beginning to show signs of improvement, the Stadion Investment Model is still deep in its most defensive market environment, telling us that there is still a lot of risk in this movement. Until the Model gives an indication for increased allocations to the equity markets, we will remain in our current defensive stance.
The Stadion Investment Model appears to be in tune with the markets, and if this short term rally develops into a prolonged uptrend we will not be far behind. However, if clarity comes to some of the outstanding negative catalysts and causes the markets to continue their descent we will remain well positioned in a defensive posture.
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