CLIENT TALKING POINTS
UK
Gotta love that Brexit! UK economic data continues to accelerate with the best PMI print in 2.5yrs (56.1 DEC vs. 53.1 NOV); FTSE hits fresh post Brexit high and the Pound (which I like long side vs. Short Euro) rallies +0.3%.
OIL
WTI ramps another +2.4% to $55/barrel to kick off 2017; one of my favorite “High Beta” ways to be long US stocks remains Oil & Gas Stocks (XOP); Russian stocks loving this too, up another +2.1% this morning for the RTSI after punching out a +52.2% gain in 2016.
10YR
Nice +5bps pop to 2.50% to start the year as both US growth and inflation readings continued to accelerate in DEC; immediate-term upside to 2.62% makes Gold one of our better short ideas inasmuch as long USD remains one of our favorites on last week’s -0.8% correction from immediate-term overbought.
Asset Allocation
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 1/2/17 | 30% | 22% | 9% | 10% | 1% | 28% |
| 1/3/17 | 26% | 23% | 10% | 11% | 1% | 29% |
Asset Allocation as a % of Max Preferred Exposure
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 1/2/17 | 30% | 67% | 27% | 30% | 3% | 85% |
| 1/3/17 | 26% | 70% | 30% | 33% | 3% | 88% |
THREE FOR THE ROAD
TWEET OF THE DAY
Happy #StrongDollar New Year to all of you who stayed with America's currency bull.
QUOTE OF THE DAY
"Beware of the man who works hard to learn something, learns it, and finds himself no wiser than before."
–Kurt Vonnegut
STAT OF THE DAY
Since the Brexit vote last June, the FTSE 100 is up 14.6%.
