The bullish trend, high yield trade, up trend in risky assets……..(call it what you will) prevails! Across equity, corporate bond, emerging market bond, and currency markets we see no evidence of a break of trend. Yes we do note some evidence of weakness but this has not been enough to draw into question the 12 month old bull trends. We have placed “support” lines on each of the four charts below to signify at what level we would draw into question our bullish “proposition”.
What are the odds that the charts above will breakdown over the coming weeks? We don’t know what the odds are but we do know that once a primary trend is in place it tends to last for extended periods of time. Right now, for whatever reason the trend is up and that is the way we are going to “play” things.
