This month, only developed International markets remained overweight, with the US Stock market predicted to have a slow month and consolidate its July gains. Gold was also downgraded to neutral after a 2.3% gain in July. International REITs continue to be listed as underweight for the fourth straight month. During this period, the prediction as has been wrong each month, so take this free advice for what it is worth.
Early indicators show little change for September, but that can change at any time.
Lots of changes this month, as the technical model code was refactored, revealing some bugs and opportunities for optimization. The biggest news is the technical model moved the S&P to overweight, and in ‘buy the dips’ mode. Preliminary August figures show the S&P 500 returning to neutral.
Developed Foreign markets also moved to overweight, as did Gold for the first time in awhile.
Global REITs remain in the underweight camp – the model has been wrong on this one for the last few months – maybe now it will get it right.